XPeng's stock declined after the Chinese electric vehicle maker issued weak third-quarter delivery guidance, overshadowing a separate $6.3 billion valuation for its robotics unit. Shares fell 8.5 percent in US trading and more than 9 percent in Hong Kong.
The company guided for 115,000 to 121,000 deliveries in the third quarter, a range that represents a 0.87 percent decline to a 4.30 percent increase year-over-year. That subdued outlook prompted the market sell-off even as XPeng announced its robotics business had raised over $900 million at the post-money robotics valuation.
XPeng is one of China's three largest EV makers alongside BYD and Li Auto. The company has been pursuing a diversification strategy into robotics and autonomous driving software as competition in the passenger vehicle market intensifies. The robotics unit, which develops humanoid robots and other autonomous systems, has become a focal point for the company's long-term growth narrative.
Vehicle sales remain the largest source of cash flow for the company. The company paired news of the robotics valuation with slowing near-term vehicle sales guidance while competition in China's EV market remains fierce.
BYD reported August deliveries of 427,000 units across all brands in its latest monthly update. Li Auto separately reported 376,030 deliveries in the first eight months of 2026. XPeng's quarterly guidance of 115,000 to 121,000 units would represent approximately 38,000 to 40,000 monthly deliveries at the midpoint, a fraction of BYD's output.
The $6.3 billion robotics valuation reflects investor appetite for China's autonomous systems sector. That confidence has not yet translated into near-term revenue that could offset slowing vehicle sales. XPeng must now demonstrate that the robotics business can scale to meaningful profitability while stabilizing its core automotive deliveries.
If Q3 deliveries land near the low end of the 115,000 to 121,000 range, the company would face further pressure to show concrete commercialization progress in robotics.
