Dear XPeng Stock Fans, Mark Your Calendars for August 24

When it comes to electric vehicle (EV) stocks, Tesla (TSLA) is probably the first name that comes to mind. But the EV race is getting much more crowded, especially as ambitious Chinese automakers continue to expand their presence worldwide. One name worth keeping on the radar is XPeng (XPEV). XPeng has come a long way from being just another Chinese EV maker. The company has already delivered more than one million EVs in China and sold over 60,000 vehicles in Europe since entering the market in 2024. 

Today, XPeng has expanded its presence to 65 countries, underscoring its ambitions to become a truly global EV player. Nevertheless, 2026 hasn't exactly been a smooth ride for XPEV investors. The stock has fallen sharply so far this year, weighed down by a sequential drop in July deliveries, an aggressive price war in China’s EV market, rising spending on artificial intelligence (AI) and autonomous-driving technology, and a broader sell-off across the EV sector that has also dragged down major players like Tesla. But there could be a potential turning point on the horizon.

XPeng is set to report its fiscal 2026 second-quarter results on Monday, August 24, before U.S. markets open. The report could give investors a much clearer picture of how EV demand is holding up, whether XPeng is making progress on its financial performance, and if its hefty investments in AI and autonomous driving are starting to pay off. So, with the earnings date fast approaching, let’s take a closer look at XPEV.

About XPeng Stock

While best known as an EV maker, XPeng is increasingly expanding its focus beyond cars, positioning itself as a global Physical AI company aimed at bringing artificial intelligence into the physical world and shaping the future of mobility and smart living. Through its in-house R&D efforts, XPeng has developed a full-stack Physical AI architecture that spans Turing AI chips, world foundation models, and highly integrated software and hardware applications. 

This technology platform supports a broader portfolio that includes smart EVs, robotaxis, and humanoid robots, reflecting the company’s efforts to bring Physical AI into real-world applications at scale. Headquartered in Guangzhou, China, XPeng is dual-primary listed on the New York Stock Exchange and the Hong Kong Stock Exchange. The company has built global capabilities across R&D, manufacturing, sales, and services, while continuing to invest in technological innovation and an open Physical AI ecosystem. 

Its broader goal is to make mobility and everyday living smarter, safer, and better for users around the world. But despite all those ambitions, the company has been struggling to gain traction on Wall Street. With a market capitalization of $11.60 billion, the company’s U.S.-listed American depositary shares (ADRs) have tumbled almost 40.95% so far in 2026. For context, the broader S&P 500 Index ($SPX) has gained 13.38% year-to-date (YTD).

July Deliveries Dent Investor Confidence

XPeng’s July delivery numbers gave investors little to cheer about, sending the shares down 4.85% on August 3. The company reported 38,027 vehicles delivered during the month, a 4% increase from the same period last year, but a notable slowdown from the 40,126 vehicles delivered in June 2026 and the 103,295 units delivered during the entire second quarter of fiscal 2026.

The sequential decline was particularly disappointing for investors who had hoped XPeng’s strong Q2 momentum would carry into the third quarter. While the company continued to expand its global delivery base, surpassing 1.2 million cumulative deliveries worldwide as of July 31, the weaker-than-expected July figure raised concerns about the pace of demand and contributed to the sell-off in the stock.

A Look Inside XPeng’s Q1 Financial Performance 

XPeng dropped its fiscal 2026 first-quarter earnings at the end of May, delivering a mixed set of results as the EV maker balanced weaker vehicle sales with improving margins and heavy investment in technology. For the first quarter, revenue came in at $1.89 billion, down 17.6% year over year and 41.4% sequentially. The decline was largely driven by lower vehicle sales, which fell approximately 23.5% year-over-year (YOY) to $1.59 billion. Total vehicle deliveries also declined 33.3% YOY to 62,682 units, reflecting seasonal sluggishness and intensifying competition in China’s domestic EV market.

Still, the quarter wasn't without bright spots. XPeng managed to strengthen its gross margins despite the pressure on its top line, helped by continued cost discipline and a favorable product mix. Overall gross margin expanded to 20.6%, up 5 percentage points from 15.6% in the prior-year period. Also, vehicle margin improved to 12.1%, compared with 10.5% a year earlier. However, it slipped slightly from 13% in Q4, as rising battery raw material and memory chip prices created additional unit-level cost pressures.

Meanwhile, XPeng continued to strike a balance between aggressive long-term technology investment and disciplined overhead management. Research and development (R&D) expenses jumped 46.8% YOY to $0.42 billion, driven by investments in new vehicle platform pipelines and AI software architecture development. Furthe, the company continued expansion of its physical infrastructure. As of March 31, 2026, XPeng had 733 physical sales stores covering 256 cities, while its self-operated charging network had reached 3,455 stations, including 2,398 XPeng ultra-fast charging stations.

On the bottom line, however, pressure remained. Non-GAAP net loss per ADS widened to $0.26. As of March 31, 2026, XPeng held a cash position of $6.10 billion, providing the company with a sizable financial cushion as it continues investing in its technology and product pipeline. Now, investors are turning their attention to XPeng’s fiscal 2026 second-quarter earnings report, due later this month. 

The company previously guided for total revenues between RMB19.60 billion and RMB20.80 billion, representing a YOY increase of approximately 7.25% to 13.82% and a quarter-over-quarter increase of approximately 50.38% to 59.59%. With that guidance pointing to a sharp sequential rebound, the upcoming results could offer an important look at whether XPeng is beginning to regain momentum.

How Are Analysts Viewing XPeng Stock?

Despite XPeng’s recent struggles, Wall Street remains broadly bullish on the stock, with analysts assigning it a consensus “Moderate Buy” rating. Among the 18 analysts covering XPEV, 11 rate it a “Strong Buy,” two recommend “Moderate Buy,” three have a “Hold” rating, and just two call for a “Strong Sell.” Optimism is reflected in analysts’ price targets. The average target of $21.59 points to potential upside of 79.8%, while the Street-high target of $29.60 implies that the stock could surge as much as 146.5% from its current level.