Why is Xpeng stock dipping today?

XPeng (XPEV) reported a wider net loss of RMB 1.34B in Q2 2026, up from RMB 0.48B in Q2 2025. Revenue rose 8% to RMB 19.74B, with vehicle sales up 1% to RMB 17.05B. Deliveries increased 0.1% to 103,295. Q3 guidance: 115K-121K deliveries, RMB 21.7B-23.4B revenue. Dogotix, a subsidiary, raised $900M via share sale. Pre-market, XPEV shares fell 3.04% to $11.82.

Xpeng forecasted Q3 revenue of 21.7-23.4 billion yuan, below analysts' estimate of 26.61 billion yuan. Shares fell 3.1% premarket, extending 2023 losses. Q2 deliveries met forecasts, but net loss was higher than expected. Competition and recalls impact outlook.

XPENG's robotics division raised over $900M in its first funding round, aiming to mass-produce its IRON humanoid robot by year-end. The company plans initial deployment in showrooms and factories, with commercial deliveries in 2027. XPENG reported a 17.6% revenue decline in Q1 and sees robotics as a future revenue driver.

China is recalling over 4 million vehicles, including nearly 3 million Teslas, due to safety concerns over flush door handles. The recall also affects models from Xpeng, Xiaomi, and Geely. The feature, popularized by Tesla, is deemed a safety hazard.

Tesla and eight other automakers will recall 4.3 million vehicles in China due to concerns about emergency door-opening difficulties. The recalls involve software updates, warning labels, and improved door handle markings. Tesla's recall is the largest, affecting 2.98 million vehicles. Chinese regulators have increased oversight of the EV industry, with a ban on concealed door handles set for 2027. The cost of the recalls may be limited due to modern over-the-air updates.

Tesla, Geely, and other automakers are recalling millions of vehicles in China due to emergency door handles that are difficult to identify. The recall, the largest in automotive history according to SAMR, involves adding warning labels and OTA updates. Tesla is recalling nearly 3 million vehicles, the most of any company.