Xpeng Shares Slide as Weak EV Outlook Overshadows $6.3 Billion Robotics Valuation

Xpeng forecast third-quarter deliveries of between 115,000 and 121,000 vehicles, falling short of investor expectations. Citi attributed the weaker outlook largely to supply chain constraints affecting the production ramp-up of the company’s MONA L03 model.

The guidance added to concerns about Xpeng’s core automotive business. Second-quarter revenue increased 8% year over year to 19.74 billion yuan, while its net loss widened to 1.34 billion yuan, as the company continues to navigate intense competition and softer conditions in China’s EV market.

The weaker outlook sent Xpeng shares down more than 9% in Hong Kong, following an 8.5% decline in its U.S.-listed stock. Citi subsequently trimmed its price targets for both listings, reflecting greater caution around the company’s near-term vehicle performance.

At the same time, Xpeng delivered a significant milestone outside its EV operations. Its robotics unit raised more than $900 million in its first external funding round, valuing the business at over $6.3 billion after the transaction.

The round was led by IDG Capital, with participation from Gaorong Ventures and strategic backing from Tencent and Alibaba. Xpeng plans to use the funding to accelerate the mass production and commercial deployment of advanced humanoid robots.

The valuation is particularly notable relative to Xpeng’s overall market value. Citi estimates that after accounting for the robotics unit’s valuation, the market is implicitly valuing Xpeng’s core EV business at roughly $6.5 billion — almost the same as its still-emerging robotics operation.

Xpeng sees significant overlap between the technologies powering its vehicles and humanoid robots. Capabilities developed in artificial intelligence, algorithms and proprietary chips could potentially be transferred across both businesses, giving the company a technological foundation for expanding beyond automobiles.

CEO He Xiaopeng has set an ambitious target for that diversification, previously predicting that Xpeng could eventually sell more robots than cars within the next decade. The company is also developing flying vehicles, positioning itself increasingly as an AI and mobility technology group rather than solely an EV manufacturer.

For investors, however, the latest market reaction highlights the tension between Xpeng’s long-term technology ambitions and its immediate operating challenges. Robotics may be gaining substantial value, but the company still needs to demonstrate that its core EV business can regain sales momentum and move toward sustainable profitability.