Xpeng shares decline as revenue forecast misses estimates

Published Mon, Mar 23, 2026 · 10:51 AM

[HONG KONG] Xpeng shares declined after the automaker’s first-quarter revenue forecast fell short of estimates as a slump in Chinese vehicle demand hurt deliveries at the start of the year.

The stock dropped as much as 4.9 per cent in early Hong Kong trading on Monday (Mar 23), taking this year’s decline to around 14 per cent.

The company expects sales of 12.2 billion yuan (S$2.3 billion) to 13.3 billion yuan during the first three months of this year, according to a Friday filing, missing analyst estimates of 15.7 billion yuan.

Expected vehicle (EV) deliveries also fell short, with the automaker forecasting 61,000 to 66,000 units for the current quarter. The company had a tough start to the year, with deliveries in January and February slumping 40 per cent from a year earlier.

The disappointing outlook overshadowed the automaker posting its first-ever quarterly profit at the end of 2025. Fourth-quarter net income reached 383 million yuan, compared with a 45.3 million-yuan loss projected by analysts.

Chinese automakers are bracing for a weaker EV market this year as a rollback in government subsidies hurts demand. Retail passenger vehicle sales fell 25 per cent in February from a year earlier, with new energy vehicles, which includes plug-in hybrids and battery-electric models, posting an even deeper decline, according to the China Passenger Car Association.

Xpeng chairman He Xiaopeng remains upbeat about the company’s artificial intelligence (AI)-related ventures, expecting to commence mass production of humanoid robots, flying cars and robotaxis this year.

In addition to vehicle development, investments in physical AI-related R&D will increase to seven billion yuan this year, as the sector is expected to surpass the automotive industry, he said in an earnings call on Friday.

“This investment will not only help us increase our competitive advantage and deliver substantial long-term returns,” he said. “Scale allows us to survive in competition, but it is sustained leadership in physical AI technology and commercialisation that will define our core competitive advantage.”

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Hardware costs are similar to cars for humanoid robots, but AI-related R&D costs and operational costs are significantly higher, the chairman added.

Its first vehicle, jointly developed with Volkswagen, has rolled off the production line, while Stellantis is also exploring deals with the company, Bloomberg News reported earlier this month. BLOOMBERG