XPeng Inc. · 2026 Q2 call

The business raised over USD 900 million at over USD 6.2 billion post-money valuation. This round was initiated by leading global investors, led by IDG Capital with participation from Gaorong Ventures in support from Tencent and Alibaba as strategic investors.

I have always believed that the technological challenges and level of innovation required for advanced general purpose humanoid robots are far greater than those for smart EVs by at least 20x.

We plan to enter scaled production by year-end with initial commercial deployments in XPeng stores and campuses. In 2027, XPeng IRON will officially launch and begin large-scale deliveries in China and overseas to external customers in the retail and service sectors.

the lifetime revenue and gross profit contribution of each IRON, including hardware sales and recurring revenue from upgrades to its AI model capabilities will be substantially higher than the current average selling price and gross profit per vehicle of our automotive business.

In the second quarter, our vehicle deliveries reached 103,295 units, up 65% quarter-over-quarter, and we achieved year-over-year growth ahead of the broader industry despite industry-wide cost pressures.

Extreme weather and supply chain disruptions affected our pace of ramping up in delivery. Here, I would like to especially express my sincere appreciation to our customers for their patience.

We believe XPeng's deliveries to increase significantly in the fourth quarter with monthly deliveries targeting more than 60,000 units.

Overseas quarterly deliveries exceeded 20,000 units for the first time in the second quarter, up 81% year-over-year. In the first half of the year, our international business accounted for more than 25% of total revenues.

In my view, VLA 2.0 is already on par with the world's leading ADAS on major roads. In narrow roads when negotiating as well as in campuses and parking facilities, the user experience delivered by VLA 2.0 is even better.

the model primarily trained on data from China performed nearly as well on the European urban roads as it did in China with almost no additional local training data.

our pre-installed mass-produced Robotaxi powered by VLA 2.0 has completed more than 2,000 internal test orders in Guangzhou and validated the full end-to-end process for trial passenger operations

Revenues from vehicle sales were RMB 17.05 billion for the second quarter of 2026, an increase of 1% year-over-year and an increase of 55% quarter-over-quarter.

Revenues from services and others were RMB 2.7 billion for the second quarter of 2026, representing an increase of 93.9% year-over-year and an increase of 32.6% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to the increased revenues from, first, technical R&D services rendered to the Volkswagen Group due to the successful achievement of certain key milestones

Gross margin was 20.7% for the second quarter of 2026 compared with 17.3% for the same period of 2025 and 20.6% for the first quarter of 2026. Vehicle margin was 12.1% for the second quarter of 2026 compared with 14.3% for the same period of 2025 and 12.1% for the first quarter of 2026. The year-over-year decrease was primarily due to the production generation transition.

Net loss was RMB 1.34 billion for the second quarter of 2026 compared with net loss of RMB 0.48 billion year-over-year and net loss of RMB 1.7 billion quarter-over-quarter. As of June 30, 2026, our cash position was RMB 40.48 billion.

over 85% of the supply chain partners that we work with actually overlap with the existing supply chain partners for our automotive business.

I would say it's too early for us to provide a volume prediction guidance.

we anticipate the product of human robot will achieve much higher gross profit potential compared to the automotive business. In fact, I would say it's -- the hardware is already much higher than the automotive business.

we actually have a period of 18 months that gradually allow us to achieve a separation. […] in any event, given the ownership structure, this business will be 100% consolidated. It will not impact our financials going forward, even though the business may start to separate based on the plan.