- Xpeng's net loss reached 1.78 billion yuan ($260 million) in the first quarter, ending its brief streak of profitability.
- The company expects up to 106,000 vehicle deliveries in the second quarter, largely driven by the launch of new models.
Xpeng (NYSE: XPEV) reported a significantly wider net loss for the first quarter of 2026, as the traditional slow season in China's auto industry took a toll.
This ended its first-ever quarterly profit just achieved in the fourth quarter of 2025. However, the company's gross margin showed significant improvement.
In the three months ended March 31, Xpeng recorded a net loss of 1.78 billion yuan ($260 million), according to its unaudited earnings report released on Thursday.
In comparison, the net loss for the same period in 2025 was 660 million yuan. The company had achieved a net profit of 380 million yuan in the fourth quarter of 2025.
The company's revenue for the first quarter fell 17.6% year-on-year to 13.03 billion yuan.
However, its overall gross margin surged to 20.6% from 15.6% in the same period last year. Vehicle margin also increased by 1.6 percentage points year-on-year to 12.1%.
This financial performance reflects sluggish sales in the first quarter. Xpeng delivered a total of 62,682 vehicles in the first quarter, representing a sharp decrease of 33.32% from 94,008 vehicles in the same period of 2025, and a 46.08% drop from the fourth quarter of last year.
Despite the year-on-year decline, the delivery figure still fell within the company's previously set guidance range of 61,000 to 66,000 vehicles.
Looking ahead, Xpeng provided an optimistic outlook for its second-quarter performance.
The company expects second-quarter vehicle deliveries to be between 100,000 and 106,000 units. This represents a strong quarter-on-quarter increase of up to 69.11%, although it remains largely flat compared to the same period last year.
Xpeng guided for second-quarter revenue of between 19.60 billion yuan and 20.80 billion yuan, reflecting a year-on-year increase of about 7.25% to 13.82%.
This guidance signals that the launch of new models will drive a steady rebound in sales. Based on the guidance, Xpeng's combined deliveries for May and June are expected to be between 68,989 and 74,989 vehicles.
Xpeng's sales recovery will rely heavily on its new products. The company just officially launched its new tech flagship SUV model, the GX, on May 20. The rollout of the new model marks Xpeng's further expansion into the premium market.
In addition, Xpeng is actively advancing its AI strategy. The company's chairman and CEO, He Xiaopeng, said that this year he will be dedicated to achieving the mass production of robotaxis and humanoid robots.
The company is nurturing a global business ecosystem to transform physical AI technologies into new growth engines.
The latest monthly delivery data has already shown signs of sales stabilizing. Xpeng delivered 31,011 vehicles in April. Although still declining year-on-year, it achieved a 13% month-on-month increase compared to March.
