XPeng (NYSE: XPEV) reported a wider-than-expected second-quarter adjusted loss per share of $0.19, missing analyst consensus. The Chinese electric vehicle maker’s stock fell in premarket trading after issuing a third-quarter revenue outlook below Wall Street estimates.

Despite the earnings miss, the company achieved top-line growth. Revenue rose 8% year-over-year to $2.91 billion (19.74 billion yuan), though it fell short of the analyst consensus estimate of $2.95 billion. Sequentially, revenue jumped 51.5% from the previous quarter.

Financial Performance

The divergence between revenue growth and earnings performance highlights ongoing margin challenges. While gross margin improved to 20.7% from 17.3% a year earlier, vehicle margin fell to 12.1% from 14.3%, mainly due to the company’s product-generation transition.

Analysts had projected sales of $2.95 billion, meaning XPeng missed the estimate by approximately 1.36%. The operating loss widened to 1.14 billion yuan ($168.39 million) from 934.65 million yuan a year earlier. As of June 30, XPeng held $5.97 billion in cash.

Robotics Unit Raises Capital

Separately, XPeng’s robotics business raised more than $900 million at a post-money valuation above $6.3 billion. IDG Capital led the funding round, with Gaorong Ventures participating. Tencent Holdings Ltd. and Alibaba Group Holding Ltd. joined as strategic investors. XPeng will retain control and continue consolidating the unit in its financial statements.

The company plans to use the proceeds for robotics hardware and software, physical AI model training, data generation, mass-production facilities, and global expansion. XPeng expects its next-generation IRON humanoid robot to enter mass production by the end of 2026, with commercial launches expected in 2027.

Deliveries and Outlook

XPeng delivered 103,295 vehicles during the quarter, up 0.1% from a year earlier but up 65% quarter-over-quarter. For the third quarter, the company expects deliveries of 115,000 to 121,000 vehicles, representing a year-over-year change ranging from a 0.87% decline to 4.30% growth.

The company forecast third-quarter revenue of 21.70 billion yuan to 23.40 billion yuan, representing growth of 6.47% to 14.81%. This outlook came in below the analyst consensus estimate of 25.88 billion yuan.

What the Numbers Show

The data reveals a sharp deterioration in profitability relative to sales growth. While revenue increased by 8%, the adjusted loss per share more than tripled in magnitude, rising by 216.67%. This indicates that costs or expenses grew at a significantly faster rate than revenue during the quarter. Furthermore, while overall gross margin expanded, the contraction in vehicle-specific margins suggests pricing pressures or higher costs associated with the product-generation transition are eroding operational efficiency despite higher sequential sales volumes.

XPeng Inc. (NYSE: XPEV) has issued a sales guidance range for the third quarter, projecting revenue between $3.196 billion and $3.446 billion. The forecast provides investors with a clear view of the company's expected commercial performance for the period.

The guidance reflects the company's operational outlook amid ongoing competition in the electric vehicle sector. By specifying a narrow band, XPeng signals confidence in its demand visibility and production planning for the quarter.

Guidance Details

The company disclosed the following revenue expectations:

This projection serves as a key benchmark for analysts evaluating XPeng's ability to scale its vehicle deliveries and maintain pricing discipline in a dynamic market environment.