XPeng swung back to a loss in the first quarter of 2026, reversing its recent profitability after delivery numbers plunged by roughly one-third. The Chinese electric-vehicle maker's revenue decline came despite reporting stronger margins, signaling operational improvements couldn't offset weakening demand in the world's largest automotive market.

The company's sales momentum stalled amid a sector-wide slowdown that has hit manufacturers across China's EV industry. After reaching profitability at the end of 2025, XPeng now faces the challenge of rebuilding investor confidence while navigating a challenging macroeconomic environment for new energy vehicles.

For the second quarter, XPeng projects deliveries of 100,000 to 106,000 vehicles, providing a near-term benchmark for recovery expectations. This guidance will test whether the company can regain traction in a market that has shifted decisively toward price-sensitive consumers, putting pressure on premium EV brands like XPeng to defend their market position.