XPeng Shares Slide 6% After 34% Delivery Drop and 5% EV Tax
XPeng stock slid 6% in premarket trading after January deliveries plunged 34% to 20,011 units following cuts to Chinese EV incentives and introduction of a 5% tax. While the P7+ launched across 36 countries, expanding its network to 380 stores and 60 markets, overseas growth hasn't offset domestic demand weakness.
1. January Deliveries Decline Sharpens Investor Concerns
XPeng reported January 2026 deliveries of 20,011 vehicles, a 34% year-over-year drop from 30,345 units a year earlier. This marks the steepest month-on-month decline since mid-2024 and outpaces the 7.6% slide at Li Auto and contrasts sharply with Nio’s 96.1% surge. The delivery shortfall has amplified investor worries over slower domestic demand and intensified competition in China’s EV market, contributing to a more than 6% premarket share retreat.
2. Continued Overseas Network Expansion
As of December 31, 2025, XPeng’s footprint spans 60 countries and regions, up from 45 a year ago. The company now operates 380 physical stores overseas—a 150% increase—alongside over 1,000 sales and service outlets worldwide. January saw the simultaneous launch of the XPENG P7+ across 36 markets and its European debut at the Brussels Motor Show, underlining management’s strategy to diversify revenue beyond China even as domestic deliveries falter.
3. Third-Quarter Financial Metrics Provide Partial Cushion
In November, XPeng posted third-quarter revenue of 20.38 billion yuan, a 101.8% year-over-year gain, narrowly missing consensus by 0.5%. Adjusted net loss per American depositary share was 0.16 yuan, well below the 0.47-yuan loss forecast, translating to a loss of 2 US cents per ADS. While robust revenue growth reflects strong sell-through of higher-margin models, the widened delivery gap in January underscores the challenge of sustaining profitability amid decelerating unit sales.