Shares of XPeng declined after the Chineseelectric vehiclemaker reported better-than-expected quarterly earnings.
Sometimes investors just want more.
XPeng announced Monday a third-quarter per-share loss of 1 cent from sales of $2.9 billion. Wall Street was looking for a loss of 5 cents from sales of $2.9 billion.
Sales rose 102% year over year. XPeng sold 116,007 cars in the quarter, up 149% from the 46,533 sold in the third quarter of 2024.
The growth was impressive. Still, shares fell 10.3% to $22.43 on Monday, while the S&P 500 and Dow Jones Industrial Average fell 0.9% and 1.2%, respectively.
A couple of things look to be weighing on investor sentiment. First was the outlook.
Fourth-quarter sales are expected to be about $3.2 billion. That’s up about 38% year over year, but Wall Street was looking for closer to $3.6 billion, according to FactSet. Management expects to sell 125,000 and 132,000 vehicles in the period, which implies about 43,000 vehicles per month in November and December, similar to the selling rate in October.
The second factor might be the starting point. XPeng stock has been strong so far this year, up 112% coming into Monday. Performance like that typically raises expectations for quarterly results.
Management sounded optimistic about the future. “XPeng delivered another set of record results. Vehicle deliveries, revenue, gross margin, and cash on hand all reached new highs,” said CEO Xiaopeng He in a news release.
XPeng has about $6.8 billion in cash on its balance sheet, and third-quarter gross profit margins came in at 20.1%, up from 15.3% a year ago and up from 17.3% in the second quarter of 2025.
“We are in the early stages of rapid expansion in terms of sales volume and market share, with Robo-taxi and humanoid robots advancing rapidly toward mass production,” added He.
XPeng, like Tesla, plans to use AI computing to create robotic applications. It’s a bold vision of the future. Investors just seemed to have wanted a little more for the fourth quarter.
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