A $900 Million Reason to Be Excited About XPEV Stock, Even After Disappointing Earnings Results

Xpeng (XPEV) shares tanked on Aug. 24 after the Chinese electric vehicle (EV) manufacturer’s Q2 earnings missed estimates and management issued disappointing guidance for the future. The company now sees its revenue falling between RMB21.7 billion and RMB23.4 billion in the third quarter, well below RMB26.69 billion that analysts had forecast.

Following today’s decline, Xpeng stock is down roughly 45% versus the start of this year.

Robotics Business Makes Xpeng Stock Worth Owning

Long-term investors nonetheless have reason to be excited about XPEV shares. Why? Because alongside earnings, the Chinese company said its robotics business has raised over $900 million in its first funding round, securing a post-money valuation exceeding $6.3 billion.

The financing, backed by major investors including Tencent (TCEHY) and Alibaba (BABA), represents a record single private funding round for Beijing’s embodied-AI sector.

Xpeng plans on using the proceeds to accelerate robotics hardware and software development, physical-AI models, data collection, manufacturing capacity, and overseas expansion.

The NYSE-listed firm also aims 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.

Should You Buy the Post-Earnings Dip in XPEV Shares?

The robotics business announcement is significant given it signals potential upside that may not be fully reflected in Xpeng shares’ valuation yet. 

XPEV remains attractive also because the strength in its services and other businesses helped drive a 340bps year-on-year increase in the firm’s overall gross margin to 20.7% in its second quarter. 

In short, investors are fixating on the muted near-term outlook for now. However, the combination of expanding overall margin, rapidly growing services segment, and a robotics unit worth over $6.3 billion suggests there may be more to the XPEV story than the EV business alone. 

How Wall Street Recommends Playing Xpeng

It's also worth mentioning that Wall Street remains positive on XPEV stock for the remainder of 2026. 

According to Barchart, the consensus rating on Xpeng sits at “Moderate Buy,” with the mean price target of $21.59 indicating potential for a whopping 90% rally from current levels.