Losses Widen, XPENG Needs New Blockbusters.

On May 28, XPENG Group unveiled its financial report for the first quarter of 2026.

The financial data indicates that XPENG's total revenue for the first quarter was RMB 13.03 billion, a year-on-year decrease of 17.6%, with automotive sales revenue reaching RMB 11 billion, a 23.5% decline. The net loss for the first quarter stood at RMB 1.78 billion, significantly higher than the RMB 660 million loss in the same period of 2025. In terms of vehicle sales, XPENG delivered a total of 62,682 vehicles in the first quarter, a 33% year-on-year decrease. However, as of the screenshot time, XPENG's stock had risen by 6.4% in pre-market trading, indicating that investors remain optimistic about the company.

(Image Source: App Screenshot)

In the fourth quarter of 2025, XPENG Motors achieved its first single-quarter profit, with CEO He Xiaopeng stating that 2025 marked a historic turning point. Undoubtedly, achieving full-year profitability in 2026 is crucial for XPENG. However, the first quarter witnessed a sharp decline in both sales and revenue, with the only increasing metric being the gross profit margin, which rose by 5 percentage points compared to the same period in 2025, painting a less-than-optimistic picture.

From the perspective of Dianchetong (ID: dianchetong233), the key factors behind XPENG's decline in sales and revenue lie in the absence of blockbuster products. Among XPENG's current models, only the MONA M03 can be considered a hit, with other models' monthly sales generally not exceeding 5,000 units, resulting in a cumulative delivery of only 62,682 vehicles in the first quarter.

(Image Source: Dianchetong Production)

In the first quarter of last year, shortly after the launch of the initial MONA M03, its average monthly sales exceeded 15,000 units, accounting for over 50% of XPENG's total sales. Throughout 2025, MONA M03 sales represented 40.8% of XPENG's total sales, effectively propping up half of the company's sales volume. In the first quarter of this year, MONA M03 sales declined to approximately 20,000 units, accounting for about one-third of XPENG's total sales.

This situation is not surprising, as a significant portion of automotive orders in the internet era come from pre-sales and initial sales periods. XPENG's newly launched GX model garnered nearly 50,000 orders in the first four weeks of May. Subsequent order numbers will depend more heavily on the product's inherent strength. There's no denying that MONA M03 is an exceptional product, with its electronic control and intelligent driving technology having few rivals in its class during its initial launch. However, as time passed, major manufacturers began to offer advanced intelligent driving features and larger batteries, even joint venture brands, previously criticized for their lack of product sincerity, launched multiple models with outstanding intelligent driving and spacious interiors, diminishing MONA M03's competitive edge.

Therefore, XPENG urgently needs more blockbuster products to take over from MONA M03. As a leading new energy vehicle manufacturer, XPENG is naturally prepared. The first SUV in the MONA series, L03, entered the market in April this year, with L05 in preparation. Both models are expected to be launched in the latter half of this year. With their larger size and more advanced intelligent driving technology, MONA L03/L05 are poised to replicate the success of MONA M03 and become XPENG's new blockbuster products.

(Image Source: Ministry of Industry and Information Technology)

Going forward, XPENG's MONA series and GX will serve as the brand's mainstay products in the mid-to-low-end and high-end markets, respectively. The MONA series, with its affordable pricing, will help XPENG achieve sales breakthroughs, while GX, with its substantial profit margins, is key to XPENG's turnaround.

In March this year, XPENG Motors announced its upgrade from "XPENG Motors Co., Ltd." to "XPENG Group," signaling further expansion of its business. Recently, the XPENG GX, equipped with the self-developed intelligent driving chip Turing, was launched, not only charging into the higher-end market but also becoming XPENG's first Robotaxi vehicle pre-installed with L4-level hardware, with plans to initiate Robotaxi trial operations in the second half of this year.

XPENG's intelligent driving chip has already been integrated into vehicles, boasting a single-chip computing power of 750TOPS, unlocking the potential of the second-generation VLA and giving He Xiaopeng the confidence to proclaim at the launch event that it is "five times ahead of the industry's first tier." He Xiaopeng also mentioned in an interview that L4-level autonomous driving could be achieved within 18-24 months. Once XPENG's intelligent driving technology reaches L4 level, its product competitiveness will soar, potentially revolutionizing the automotive industry.

Moreover, XPENG's robot business is also steadily advancing, with plans to mass-produce the humanoid robot IRON by the end of 2026. In terms of visual models, autonomous vehicles and robots share many similarities, and with XPENG's self-developed computing power chip, it already holds certain advantages in the robot sector. The ongoing progress in multiple businesses may be the primary reason for the slight delay in the launch of XPENG's new MONA series models.

(Image Source: XPENG)

For a group, profitability in a single quarter or daily stock fluctuations do not fully reflect the actual operational situation of the enterprise. XPENG Group should not focus on short-term gains or losses but rather on a more comprehensive and forward-looking strategic layout.

XPENG Group is advancing step by step, with each new business venture building on its established strengths: first achieving leadership in the intelligent driving sector, then developing its own intelligent driving chip, followed by layout (layout) Robotaxi after acquiring the chip, and finally promoting the landing of humanoid robots by leveraging the experience accumulated in intelligent driving technology research and development, self-developed chips, and automotive production industrial scenarios.

Once XPENG GX's production capacity ramps up and stable deliveries are achieved, and MONA L03/L05 are launched, Dianchetong (ID: dianchetong233) believes XPENG can turn the situation around, boosting sales and revenue. XPENG Group has numerous tasks ahead, including expediting the delivery of XPENG GX, accelerating the launch of new MONA series models, and refining the layout (layout) of humanoid robots and Robotaxi, ensuring simultaneous progress and breakthroughs in both new and existing businesses.

XPENG Motors financial report MONA new energy vehicles

Source: Leikeji

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