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Xpeng shares drop after Q2 miss and weaker-than-expected Q3 outlook
Xpeng guided Q3 revenue to RMB21.7 billion to RMB23.4 billion, while it also disclosed a robotics funding round raising more than $900 million with a post-money valuation above $6.3 billion.
Xpeng (XPEV) shares slid after the Chinese electric vehicle maker reported Q2 results that missed expectations and provided guidance that pointed to a weaker revenue outlook. On Aug. 24, the company said it expects third-quarter revenue of RMB21.7 billion to RMB23.4 billion, below the RMB26.69 billion analysts had forecast, according to Yahoo Finance. The stock decline was sharp, with Xpeng shares down roughly 45% versus the start of the year after the earnings release. Even with the near-term outlook weighed down by the EV business, the company highlighted an expanding robotics effort alongside its earnings update.
Xpeng said its robotics unit completed its first funding round, raising more than $900 million and setting a post-money valuation above $6.3 billion. The financing was backed by major investors including Tencent and Alibaba, and the company said it plans to use the proceeds to accelerate robotics hardware and software development, physical AI models, data collection, manufacturing capacity, and overseas expansion.
Xpeng also outlined operational targets for the robotics business, aiming to produce 1,000 IRON humanoid robots per month by the end of 2026, with initial deployments at retail and industrial locations and broader commercialization targeted for 2027. Separately, the company reported a 340 basis point year-over-year increase in overall gross margin to 20.7% in Q2, citing strength in services and other businesses, and Yahoo Finance said Wall Street remains positive on Xpeng for the remainder of 2026.