XPeng Q1 2026 Deliveries Drop 33% but Gross Margin Rises to 20.6%; Strong Q2 Sales Rebound Expected

XPeng Inc. delivered 62,682 vehicles in the first quarter of 2026, down 33.3% year-over-year and 46.1% quarter-over-quarter, primarily due to the model transition cycle of its core products. Automotive sales revenue amounted to RMB 11.0 billion, a decrease of 23.5% year-over-year and 42.3% quarter-over-quarter. The average selling price per vehicle was approximately RMB 175,000, up about 14% compared to the same period last year. Revenue from services and other sources reached RMB 2.03 billion, an increase of 41.2% year-over-year, driven mainly by growth in technology development services and parts sales. Gross margin for the quarter stood at 20.6%, up 5.0 percentage points year-over-year and down only 0.7 percentage points quarter-over-quarter. Net loss widened to RMB 1.78 billion, compared to a net loss of RMB 660 million in the same period last year and a net profit of RMB 380 million in the prior quarter. The deterioration was primarily attributable to reduced delivery volumes weakening economies of scale and a significant increase in R&D expenses. R&D expenses for the quarter totaled RMB 2.91 billion, up 46.8% year-over-year, primarily allocated to new vehicle development and AI-related technologies. As of March 31, 2026, XPeng held cash and cash equivalents of RMB 42.09 billion, a decrease of RMB 5.57 billion from the end of 2025, mainly due to higher R&D investments and operating losses. In terms of sales channels, as of the end of Q1, the company operated 733 stores across 256 cities. Its proprietary charging network comprised 3,455 stations, including 2,398 ultra-fast charging stations. XPeng expects second-quarter 2026 deliveries to range between 100,000 and 106,000 vehicles, representing a 59.5% to 69.1% increase quarter-over-quarter. Total revenue is projected to be between RMB 19.6 billion and RMB 20.8 billion, up 7.3% to 13.8% year-over-year and 50.4% to 59.6% quarter-over-quarter. With the official launch of the XPeng GX on May 20 and the subsequent ramp-up of new model deliveries, sales volume is expected to rebound significantly in the second quarter.