XPeng Inc.

XPeng reported Q1 2026 total revenue of RMB 13.03 billion, down 17.6% year over year and down 41.4% quarter over quarter. Vehicle sales revenue was RMB 11 billion, down 23.5% year over year and down 42.3% quarter over quarter; services and other revenue was RMB 2.03 billion, up 41.2% year over year and down 36.1% quarter over quarter. Gross margin was 20.6%, versus 15.6% a year ago and 21.3% in Q4 2025; vehicle margin was 12.1%, versus 10.5% a year ago and 13% in Q4 2025. Operating loss was RMB 1.87 billion and net loss was RMB 1.78 billion, and cash was RMB 42.09 billion as of March 31, 2026. For Q2, management guided deliveries of 100,000 to 106,000 units, revenue of RMB 19.6 billion to RMB 20.8 billion, and gross margin around the same level as Q1.

Hao Pang framed the quarter around a broader shift from an EV maker toward a physical AI company, emphasizing VLA 2.0, robotaxi, and humanoid robots as the next growth engines. He said XPeng is intentionally increasing R&D investment in AI and expects the company’s strongest delivery growth trajectory ahead, with quarterly deliveries rising meaningfully through the rest of 2026. His tone was confident and expansionary, especially on global markets, where he said every future XPeng model will be built as a global vehicle.

James Wu highlighted the main financial pressure points: lower deliveries drove revenue down, while R&D rose to RMB 2.91 billion, up 46.8% year over year, due to new vehicle models and AI-related technologies. SG&A fell to RMB 1.88 billion, down 3.2% year over year, mainly because of lower commissions to franchise stores. He said gross margin benefited from cost reduction and product mix, but vehicle margin was pressured sequentially by higher memory chip and battery-related costs; despite that, he expects Q2 total gross margin to remain around Q1 levels.

Analysts pressed on GX order strength, steady-state volume, and gross margin; management said GX demand is above expectations, premium trims account for over 80% of initial orders, and GX has the highest gross profit in the portfolio. On robotaxi, management said China’s tighter regulation has not affected development rhythm, that testing is currently limited to Guangzhou, and that the company expects to work through partners rather than operate the service directly. Questions on overseas growth and localization led management to say international sales are already near 20% of volume, overseas profitability is stronger, and local production in Indonesia, Malaysia, and Austria will expand.