Xpeng forecast disappoints as China EV competition heats up
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FILE PHOTO: A sign of Xpeng is seen on Xpeng's new flagship SUV GX, after a launch event for the car, in Beijing, China May 20, 2026. REUTERS/Tingshu Wang/File Photo
Aug 24 (Reuters) - Chinese EV maker Xpeng forecast third-quarter revenue below Wall Street expectations on Monday, hurt by intensifying competition in the domestic auto market.
The company's U.S.-listed shares fell 3.1% in premarket trading, on course to widen this year's losses of about 40% as of Friday.
Here are some details:
• Xpeng forecast third-quarter revenue between 21.7 billion yuan ($3.23 billion) and 23.4 billion yuan, below analysts' average estimate of 26.61 billion yuan, according to data compiled by LSEG.
• It delivered 103,295 units in the second quarter ended June 30, within its forecast range of 100,000 to 106,000 units.
• "During the second quarter of 2026, our operations remained resilient despite industry-wide cost pressures," Xpeng's Vice Chairman and Co-President Hongdi Brian Gu said.
• Chinese domestic car sales have been in steady decline since late last year, as weak consumer demand and years of intense price competition have left the world's biggest auto market glutted with excess capacity, pushing automakers to step up exports and overseas expansion.
• Xpeng posted second-quarter net loss attributable to ordinary shareholders of 1.34 billion yuan, far higher than estimates of a loss of 511.8 million yuan.
• It also recalled 264,842 EVs as part of a broader China recall involving about 4.3 million vehicles over emergency door-release concerns.
• Last month, the company launched its MONA L03, AI SUV coupe.
• Separately, Xpeng's robotics unit raised more than $900 million in its first funding round, setting a record for a single private financing in China's embodied AI sector.
($1 = 6.7227 Chinese yuan renminbi)
(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Diti Pujara)
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