Xpeng Inc. Shares Plunge 10.12% as January Deliveries Drop 34% Amid EV Sector Slowdown

The share price fell to its lowest level since April 2025 today, with an intraday decline of 10.12%.

Xpeng Inc.’s stock plunged amid weak January 2026 vehicle deliveries, which dropped 34% year-over-year to 20,011 units, contributing to a premarket decline. The company launched the XPENG P7+ in 36 countries, including its European debut at the Brussels Motor Show, but the timing coincided with the delivery slump, raising questions about offsetting core market losses. Despite a 101.8% revenue growth in Q3 2025 to 20.38 billion yuan, narrowly missing estimates, the adjusted net loss per ADS improved to 0.16 yuan, still highlighting profitability challenges. The broader EV sector faces a slowdown, with rivals like BYD and Nio also reporting significant delivery declines, signaling industry-wide challenges from weakening demand and price wars.

Analysts estimate XPEV’s fair value at $28.16, above its current price of $17.98, but skepticism persists over achieving this. Persistent net losses, global expansion risks in new markets like Europe, and R&D pressures weigh on investor confidence. The stock’s 12% and 20.76% declines over 30- and 90-day periods reflect uncertainty. Xpeng must reverse delivery trends and demonstrate profitability to reinvigorate growth, with upcoming months critical for addressing these challenges and proving its long-term viability.