Xpeng shares sink as weak delivery forecast overshadows $6.3 billion robot unit valuation
Xpeng shares dropped after the company provided a weaker-than-expected delivery forecast for the third quarter, despite a successful funding round for its robotics unit. While the robotics business is valued at over $6.3 billion, investors remain focused on supply chain issues impacting the company's core electric vehicle sales.
Why it matters
The market reaction underscores the volatility of EV startups and the challenge of balancing core automotive production with speculative investments in robotics and AI.
Shares of Chinese electric vehicle maker Xpeng fell more than 9% in Hong Kong on Tuesday after the company issued weaker-than-expected forecast for third-quarter deliveries, despite its robotics business unit securing a valuation of over $6.3 billion in a funding round.
Xpeng' s U.S.-listed shares closed 8.5% lower on Monday.
The company reported a second-quarter net loss of 1.34 billion yuan (200 million), wider than a year earlier, while revenue rose 8% to 19.74 billion yuan. It forecast deliveries of between 115,000 and 121,000 vehicles in the third quarter.
Citi said the delivery guidance fell short of investor expectations, largely due to supply chain constraints that disrupted the ramp-up of Xpeng's MONA L03 model. It slightly lowered its price targets for Xpeng's U.S.- and Hong Kong-listed shares following the company's financial results.
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