XPeng Inc. (NYSE:XPEV) stock traded mostly flat Thursday after the company reported first-quarter financial results.

Revenue Growth and Deliveries

The company reported quarterly revenue of 13.03 billion Chinese yuan ($1.89 billion), down 17.6% year over year and below the analyst consensus estimate of $3.13 billion. Revenue declined 41.4% from the previous quarter.

The Tesla Inc. (NASDAQ:TSLA) rival delivered 62,682 vehicles during the quarter, down 33.3% from a year earlier.

As of March 31, 2026, XPeng's physical sales network included 733 stores across 256 cities.

The company's self-operated charging network expanded to 3,455 stations, including 2,398 ultra-fast charging stations.

Margins, Profitability and Balance Sheet

Revenue from vehicle sales fell 23.5% year over year to 11 billion yuan ($1.59 billion), primarily due to lower vehicle deliveries.

Gross margin improved to 20.6% from 15.6% a year earlier.

Vehicle margin rose to 12.1% from 10.5% in the prior-year period, driven mainly by cost reductions and an improved product mix.

However, XPeng said quarter-over-quarter margin pressure was driven by higher unit vehicle costs tied to rising memory chip and battery-related expenses.

Operating loss widened to 1.87 billion yuan ($271.7 million), compared with a loss of 1.04 billion yuan a year earlier.

Adjusted loss per ADS was 1.76 yuan, wider than the analyst consensus estimate for a loss of 1.12 yuan. In U.S. dollar terms, adjusted loss per ADS was 26 cents.

Cash position was $6.10 billion as of March 31, 2026.

Executives Highlight New Models, AI Expansion and Margin Growth

Chairman and CEO Xiaopeng He said the successful GX launch positioned the company for stronger sales growth as XPeng prepares to introduce four new models this year.

He said the company is prioritizing the mass production of robotaxis and humanoid robots while building a global ecosystem aimed at turning physical AI technologies into new revenue and profit drivers.

Vice Chairman and Co-President Hongdi Brian Gu said XPeng delivered a gross margin above 20% in the first quarter despite seasonal industry weakness, supported by in-house technology innovation and growing international revenue.

Gu added that the company plans to accelerate commercialization and broader adoption of physical AI applications as part of its long-term strategy.

Outlook

XPeng expects second-quarter 2026 vehicle deliveries between 100,000 and 106,000 units, representing a year-over-year change ranging from a decline of 3.08% to growth of 2.73%.

The company projected second-quarter revenue between 19.6 billion yuan and 20.8 billion yuan, implying year-over-year growth of 7.25% to 13.82%. The forecast came in below the analyst consensus estimate of 21.1 billion yuan.

Price Action

XPEV Price Action: XPeng shares were up 0.30% at $16.50 during premarket trading on Thursday, according to Benzinga Pro data.

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