XPeng‘s US-listed shares reached a new sixteen-month low on Thursday at $13.98, mirroring the decline in Hong Kong-listed shares over the past several days.
Its Hong Kong-listed shares closed 5.6% lower at HK$56.20 on Thursday after falling to a new 52-week low earlier in the week.
The move extends a slide that has seen the Guangzhou-headquartered carmaker lose nearly a third of its market value since the start of the year.
Thursday’s intraday low marked an approximately 50.5% decline from the stock’s 52-week high of $28.24 reached last November — when shares rallied following the company’s AI Day commitments to launch three robotaxi models in 2026.
XPeng remains 81.2% below its all-time high of $74.49 reached in November 2020.
Investors are weighing the Guangzhou-based automaker’s persistent delivery declines against an increasingly ambitious — and capital-intensive — expansion strategy, spanning new vehicle launches, autonomy, humanoid robots, flying cars, yachts and an international manufacturing push.
Delivery Slump
XPeng‘s stock has come under pressure amid five consecutive months of year-over-year delivery declines.
The company delivered 32,158 vehicles in May, down 4.1% from a year earlier despite improving sequentially from April levels.
During the first five months of the year, XPeng delivered 125,851 vehicles, down 22.6% compared with the same period in 2025.
The figures mark a sharp reversal from last year, when the automaker delivered a record 429,445 vehicles and exceeded its annual target.
Despite the slowdown, the company continues to target between 550,000 and 600,000 deliveries this year, implying growth of 28.1% to 39.7% from 2025 levels.
Between January and March, XPeng delivered 62,682 vehicles, a 33.3% decline from a year earlier and its first quarterly year-over-year delivery decline since the second quarter of 2023.
The slowdown was partly attributed to reduced government incentives and Lunar New Year disruptions.
However, the broader picture remains one of slowing momentum in China’s increasingly competitive EV market.
When reporting fourth-quarter earnings in March, XPeng guided for second-quarter deliveries of between 100,000 and 106,000 vehicles, implying a significant acceleration from first-quarter levels.
After the weak start to the year, investors are increasingly focused on whether the company can achieve the delivery ramp needed to meet its full-year targets.
GX Launch + Mona Dependence
XPeng is counting on the recently launched GX SUV to help revive momentum.
The flagship model entered the market in late May — and therefore had only a limited impact on monthly delivery figures.
Early indicators have been encouraging, however, with company executives stating that the vehicle generated a record number of showroom visits and test drives following its launch.
The delivery breakdown for May highlighted how dependent the brand continues to be on its cheaper Mona M03 sedan, as it remained XPeng’s best-selling vehicle in May, accounting for roughly 44% of the company’s monthly deliveries.
The model has been the company’s primary volume driver since launch and was responsible for approximately 41% of XPeng’s total deliveries in 2025.
The dependence on the Mona series appears set to continue.
Earlier this year, XPeng filed for the Mona L03, a compact coupe-style SUV and the first SUV under the Mona brand.
The vehicle is expected to be priced below the G6 crossover, expanding XPeng’s presence in the mass-market segment.
A second Mona SUV aimed at family buyers is also expected later this year.
While the expansion of the Mona lineup could help support delivery growth, it also reinforces investor concerns that XPeng remains heavily reliant on lower-priced vehicles even as it pushes into more premium segments.
Overseas Push
As growth slows in China, XPeng continues to expand aggressively overseas.
The company is now present in more than 60 countries and regions worldwide, with Mexico and Tunisia among its most recent additions.
International deliveries have become an increasingly important growth driver.
XPeng exported a record 6,503 vehicles in May, an increase of approximately 80% from a year earlier.
Europe remains central to the company’s international strategy.
Last year, XPeng partnered with Magna to assemble vehicles at the supplier’s facility in Graz, Austria — becoming one of the first Chinese EV manufacturers to establish vehicle production in Europe through a contract manufacturing arrangement.
The company currently assembles the G6, G9 and P7+ at the facility and plans to add a fourth model in the near future.
Local manufacturing helps the company reduce exposure to European tariffs on Chinese-built EVs while improving competitiveness in the region.
According to company executives, capacity allocated to XPeng at Magna’s facility is approaching its limits, prompting the automaker to evaluate additional manufacturing options in Europe.
Last month, a senior European executive said the automaker is exploring the possibility of leveraging Volkswagen’s manufacturing footprint on the continent to expand production capacity.
XPeng‘s partnership with Volkswagen, which began in 2023 when the German automaker invested $700 million for a 4.99% stake in the company.
Beyond vehicles, XPeng continues to increase spending across emerging technology initiatives — with the German legacy automaker becoming the first client of its VLA 2.0 autonomous driving software.
R&D and Autonomy
The company increased its workforce by 29.4% in 2025 to 19,884 employees, marking the largest annual headcount increase in its history as a public company.
Research and development staffing rose 42.7% — while total R&D spending reached 9.5 billion yuan, including 4.5 billion yuan allocated to artificial intelligence initiatives.
XPeng plans to increase AI-related investment to 7 billion yuan in 2026 as it develops proprietary chips, foundation models and autonomous driving systems.
Founder and Chief Executive He Xiaopeng recently said he had assumed direct responsibility for the company’s robotics business, one of several long-term initiatives being developed alongside its core automotive operations.
