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Research Alert: Xpeng Returns To Loss In Q1 2026, But Gross Margin Stays Resilient

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

XPeng reported a weaker-than-expected Q1 2026 results, with deliveries declining 33.3% Y/Y to 62,682 units while profitability turned negative, swinging to CNY1.78B net loss, due to a 46.8% surge in R&D expenses (CNY2.91B) for AI investments. Revenue fell 17.6% Y/Y to CNY13.03B due to weaker vehicle demand. However, gross margin remained resilient at 20.6% and vehicle margin improved 1.6%-pts Y/Y to 12.1%, due to cost reduction and better product mix. Monthly overseas deliveries surpassed 6,000 units in April, while VLA 2.0 penetration reached 50% with regulatory approval expected in Europe in 2027. Management guided Q2 deliveries of 100K-106K units and revenue of CNY19.6B-CNY20.8B. XPeng expects four new global SUV models to launch in 2H 2026, aiming to more than double 2026 overseas sales. With elevated R&D spending, we remain cautious on the near-term margin outlook. AI and humanoid robot commercialization (expected to materialize in 2027) could support long-term valuation re-rating potential, in our view.

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