Key TakeawaysXPeng’s Q1 2026 net loss reached 1.78 billion yuan ($262.6 million), substantially exceeding analyst projections of 811.9 million yuan.First-quarter revenue declined 18% to 13.03 billion yuan amid vehicle deliveries falling approximately one-third year-over-year.Gross margin expanded to 20.6% from 15.6% in the prior-year period, representing a significant operational improvement.Despite the earnings shortfall, XPeng shares advanced 3.8% to $17.07 in premarket sessions.Second-quarter projections indicate 100,000–106,000 vehicle deliveries with revenue expectations of 19.60–20.80 billion yuan.XPeng (XPEV) kicked off 2026 with challenging first-quarter results that included a wider loss and significant revenue contraction, yet investors gravitated toward strengthening profitability metrics and forward-looking projections — pushing shares higher before the opening bell.$XPEV Q1’26 EARNINGS HIGHLIGHTS Revenue: $1.89B (Est. $1.8B) Adj. EPS: -$0.26 Gross Margin: 20.6%; +5.0 pts YoY Vehicle Margin: 12.1%; +1.6 pts YoY “This year, I am dedicated to leading our team to achieve the mass production of Robotaxis and humanoid robots.”… pic.twitter.com/SXAi0gGvwI— Wall St Engine (@wallstengine) May 28, 2026The Chinese electric vehicle manufacturer headquartered in Guangzhou recorded a net loss of 1.78 billion yuan ($262.6 million) during the first quarter, expanding from a 664 million yuan deficit in the same period last year. First-quarter revenue contracted 18% to 13.03 billion yuan. These results fell short of Street consensus — market watchers had anticipated a loss of 811.9 million yuan against revenue of 13.55 billion yuan.Shares of XPEV climbed 3.8% to $17.07 during Thursday’s premarket session, defying the earnings disappointment.XPeng Inc., XPEVThe automaker delivered 62,682 vehicles during the quarter, representing a decline from 94,008 units in Q1 2025 — marking roughly a 33% year-over-year decrease. This downturn ended a string of record-setting quarters and mirrored broader headwinds affecting China’s electric vehicle market, where aggregate new vehicle sales declined approximately 7% in Q1 2026.Profitability Metrics Show PromiseDespite headline numbers falling short of expectations, gross margin expanded to 20.6%, advancing from 15.6% in the year-ago quarter. Vehicle-specific margins improved to 12.1%, benefiting from operational efficiencies and an enhanced product portfolio.This profitability enhancement likely explains why shares avoided a selloff following the report. The data demonstrates that while unit volume contracted, XPeng is extracting greater profitability from each vehicle transaction.Li Auto, which released earnings on the same day, experienced a 3.4% decline to $15.25 after similarly underperforming forecasts. Li reported a per-share deficit of 15 cents against revenue of $3.3 billion, compared to analyst estimates calling for a 13 cent loss on $3.2 billion in sales. Deliveries increased marginally to 95,142 vehicles, though revenue decreased year-over-year.Second-Quarter Projections Signal ReboundLooking toward Q2, XPeng forecasts deliveries between 100,000 and 106,000 vehicles — essentially unchanged from the prior year — alongside revenue projections of 19.60 to 20.80 billion yuan. This outlook represents substantial sequential momentum compared to Q1’s softer performance.Li’s second-quarter delivery forecast proved less optimistic, targeting approximately 97,500 vehicles, representing a roughly 12% year-over-year decline.Considering results from NIO, which reported earnings independently, the trio of Chinese EV manufacturers collectively anticipates approximately 313,000 vehicle deliveries in Q2 — reflecting 9% year-over-year growth and an acceleration from the 5% expansion observed in Q1. This provides a cautiously encouraging indicator for the sector overall.Heading into Thursday’s earnings release, XPEV had declined 19% year-to-date, which may have contributed to the market’s measured response to the quarterly shortfall.Through the end of April, Tesla recorded approximately 139,000 vehicle sales in China, declining 15% year-over-year, with TSLA shares down 1.6% in premarket trading at $433.51.The post XPeng (XPEV) Stock Climbs 4% Despite Wider Q1 Loss and Revenue Decline appeared first on Blockonomi.