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Growth and losses went hand in hand in the second-quarter results

XPeng said in its second-quarter results released on Aug. 24 that it increased delivery volumes and revenue, but delivered a weaker picture on profitability. The company delivered 103,295 vehicles in the period, up 65% from the previous quarter. Total revenue rose 8% year on year to RMB 19.74 billion.

By contrast, net loss widened from RMB 480 million in the same period last year to RMB 1.34 billion. Vehicle gross margin also fell from 14.3% to 12.1% as the company navigated a transition between product generations. Research and development spending rose 32.1% year on year to RMB 2.91 billion, while sales and administrative expenses increased 15.2% to RMB 2.5 billion, making it harder for revenue growth to translate into profit.

Overseas sales were the main margin support

The most notable support in the company's results came from international sales. Overseas deliveries exceeded 20,000 units in the second quarter, up 81% year on year. More than a quarter of total revenue in the first half of 2026 came from overseas markets.

XPeng said pricing above 40,000 euros per vehicle abroad lifted unit profitability compared with the domestic market. Combined with a roughly 94% increase in service revenue, helped by technical R&D payments from Volkswagen Group, total gross margin rose to 20.7%. A year earlier, the figure stood at 17.3%.

  • Second-quarter deliveries: 103,295 vehicles
  • Total revenue: RMB 19.74 billion
  • Net loss: RMB 1.34 billion

$900 million raised for the robotics unit

Alongside its auto business, the company is trying to build a new growth story in robotics. XPeng's humanoid robot unit raised $900 million in fresh funding. The round was led by IDG Capital, with Tencent and Alibaba also joining as strategic investors, valuing the unit at $6.2 billion.

The money will be used to prepare for mass production of IRON, the humanoid robot. Management said the robot has 21 degrees of freedom in its hand design and that 85% of its supply chain overlaps with the company's existing auto parts network. However, the company said it does not expect the business line to generate meaningful revenue in the near term, with scaled production pushed to the end of 2026 and actual deliveries delayed until 2027.

Third-quarter targets and market expectations

For the third quarter, XPeng forecast deliveries of 115,000-121,000 vehicles and revenue of RMB 23.4 billion. The company also said new orders rose 50% quarter on quarter to a record high. Management added that extreme weather and supply chain disruptions slowed production ramp-up for the MONA L03 model.

Growth expectations remain high in the stock valuation

On the market side, the picture points to cautious optimism. The number of hedge funds holding the stock fell from 21 to 19, while the short interest stood at 5.97% of the free float. As of Aug. 26, the stock was trading at about 69.93 times forward earnings, a valuation that signals expectations of strong profit growth in both vehicle sales and robotics.

Still, continuing losses and the fact that robotics revenue remains several years away could make the stock more sensitive in the coming quarters. Key factors for the company will be whether MONA L03 production momentum recovers and whether the IRON project stays on schedule.

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