XPeng Shares Fall Sharply on Vehicle Margin Miss, Soft Guidance

By Jiahui Huang

Shares of XPeng fell sharply in Hong Kong after the carmaker reported a slight miss on vehicle margin and offered soft fourth-quarter guidance.

XPeng's shares slid 9.1% to 87.30 Hong Kong dollars early Tuesday, equivalent to US$11.23, in Hong Kong, on track for their largest one-day loss since April. The Hang Seng Index was down 1.2%.

The losses came after XPeng on Monday reported largely in-line results for the third quarter but a slight miss for vehicle margin.

XPeng's vehicle margin was 13.1%, weighed by promotional expenses during the quarter, Nomura analysts said in a note.

That said, analysts are still generally positive on XPeng's growth next year. The automaker is planning to release three models in the first quarter and four new models over the rest of 2026.

"We see a bright future for the name with good prospects for development ahead, while potential breakeven into the fourth quarter may further underpin its fundamentals from a financials perspective," the Nomura analysts said.

The company's fourth-quarter guidance was quite soft, Bernstein analysts said in a note.

XPeng guided for fourth-quarter total revenue of 21.5 billion yuan to 23.0 billion yuan, equivalent to US$3.02 billion to US$3.24 billion, and sales of 125,000 to 132,000 units.

That implies average monthly sales of 41,000 to 45,000 units for November and December, which is on the softer end when compared with October's 42,000 units and year-end seasonality, Bernstein said.

Chinese EV stocks were broadly lower early Tuesday in Hong Kong. Zhejiang Leapmotor's shares fell 3.9% to HK$52.65 after it released earnings late Monday.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

November 17, 2025 22:40 ET (03:40 GMT)