Lower shipments drag Xiaopeng's Q1 revenue, gross margin rises to 20.6% showing resilience

XPeng Motors' latest financial report shows that due to the decline in delivery volume, the total revenue in the first quarter of 2026 decreased by 17.6% year-on-year to 13.03 billion yuan, and the net loss expanded year-on-year to 1.78 billion yuan.

In the first quarter, XPeng's total delivery volume was 62,682 units, a year-on-year decrease of 33.3%, leading to significant pressure on overall revenue and vehicle sales revenue, indicating a stage-bottoming of the company's operational performance.

However, thanks to in-house technological innovation and product portfolio improvements, the company's overall gross margin for the first quarter rose to 20.6% against the trend, and the guidance for delivery and revenue in the second quarter shows a strong recovery momentum.

Delivery and Revenue Facing Periodic Pressure

The financial report indicates that XPeng's automobile sales revenue for the first quarter was 11.0 billion yuan, a decrease of 23.5% year-on-year and a decrease of 42.3% sequentially, mainly influenced by the decline in automobile delivery volume for the quarter.

During the same period, service and other revenues reached 2.03 billion yuan, a year-on-year increase of 41.2%, primarily due to the increase in revenue from technical research and development services and the sales of parts and accessories, partially alleviating the pressure on the main business.

As of March 31, 2026, the total cash held by XPeng Motors was 42.09 billion yuan, which narrowed from 47.66 billion yuan at the end of 2025, but the capital reserves remain ample.

Gross Margin Maintains Resilience Against the Trend

Despite being in the industry's off-season and experiencing a decline in sales, XPeng's overall gross margin for the first quarter still reached 20.6%, up 5.0 percentage points from the 15.6% in the same period of 2025, showing strong resilience. The gross margin for automobiles was 12.1%, up 1.6 percentage points year-on-year, and the management attributes this to the effectiveness of platform cost reduction measures and the continuous improvement of the high-gross margin model product mix.

In terms of R&D investment, XPeng's R&D expenses in the first quarter increased by 46.8% year-on-year to 2.91 billion yuan, as the company accelerates the development of new models and the large-scale commercialization of physical AI technology.

Second Quarter Guidance Signals Strong Recovery

XPeng Motors Chairman He Xiaopeng stated that four new models will be launched and delivered this year, and the team will complete the mass production of Robotaxi and humanoid robots within the year, nurturing a global business ecosystem.

Recent data shows that recovery is underway, with XPeng's total delivery volume reaching 31,011 units in April, bringing the cumulative delivery volume for the first four months of 2026 to 93,693 units. For the second quarter of 2026, XPeng expects the automobile delivery volume to be between 100,000 and 106,000 units, with a total revenue estimate of between 19.6 billion yuan and 20.8 billion yuan, showing a sequential increase of over 50%.