XPeng's Q1 2026 Earnings Conference. He Xiaopeng: Humanoid robots will go into mass production by the end of this year and will be delivered to commercial customers in 2027.

The financial report for Q1 2026 released by XPeng Group (XPEV.US; 09868.HK) on May 28 shows that the company's total revenue in this fiscal quarter decreased by 17.6% year-on-year to 13.03 billion yuan. Among them, the revenue from automobile sales decreased by 23.5% year-on-year to 11 billion yuan; the revenue from services and other sources increased by 41.2% year-on-year to 2.03 billion yuan.

In terms of profit, XPeng's overall gross profit margin in the first quarter was 20.6%, an increase from 15.6% in the same period of 2025. Among them, the gross profit margin of the automobile business was 12.1%, compared with 10.5% in the same period of 2025. The net loss in the first quarter was 1.78 billion yuan.

XPeng delivered a total of 62,900 vehicles in the first quarter. He Xiaopeng, the chairman of XPeng, explained that affected by the fluctuations in the domestic new energy vehicle market, during the market downturn, XPeng pays more attention to the balance between sales volume and business quality to seek long-term sustainable development. He Xiaopeng expects that with the launch of the MONA M03 and GX, XPeng's delivery volume in the second quarter will increase significantly.

The 2026 XPeng MONA M03, which was launched in April, is equipped with the Turing chip in its Max version and supports the second-generation VLA. More than 85% of users have chosen the high - end version, and the MONA M03 has ranked first in the sales of Class A pure - electric sedans for 19 consecutive months. In the first batch of large - scale pre - orders for the XPeng GX launched on May 20, the flagship version with a price of over 350,000 yuan accounted for more than 80%.

He Xiaopeng said, A series of more technologically advanced products will be launched in the second half of the year, including humanoid robots and flying cars, to continuously enhance the brand power and profits. XPeng's financial guidance shows that the expected delivery volume in the second quarter will reach 100,000 - 106,000 vehicles, a sequential increase of about 59.54% - 69.11%; the total revenue will be between 19.6 billion and 20.8 billion yuan, a sequential increase of 50.38% - 59.59%.

In terms of the overseas market, after the overseas delivery of the 2026 XPeng P7+ started in April, XPeng's monthly sales overseas exceeded 6,000 vehicles for the first time. Starting from the second quarter, the revenue contribution of XPeng's international business is expected to exceed 20%. The three models to be launched by XPeng in the second half of the year will all be targeted at the global market. The goal is to achieve monthly overseas sales of over 10,000 vehicles in the fourth quarter and double the annual overseas sales.

In terms of intelligent driving, in April, the proportion of assisted driving mileage of vehicles equipped with the second - generation VLA exceeded 50% for the first time, becoming a high - frequency and essential need for users. At the same time, the EU DCAS regulatory framework is being implemented at an accelerated pace. The second - generation VLA is being tested in Europe and is expected to obtain regulatory approval in multiple countries early next year. The pre - installed GX series fleet of Robotaxi has conducted public road L4 tests in Guangzhou and plans to start passenger - carrying demonstration operations in Guangzhou in the third quarter.

Currently, the R & D of the hardware and software of the humanoid robot Iron is progressing smoothly, and it is about to enter the ET2 hardware - software integration stage; XPeng's self - developed new - generation dexterous hand has been developed, and the cost has been significantly reduced. XPeng will showcase the multi - language communication, human - like posture, and ability to perform professional tasks of the new - generation Iron to the outside world in the third quarter. Iron is expected to be mass - produced by the end of 2026, first for commercial use in XPeng stores, and will start to be delivered to domestic and overseas commercial customers in 2027.

“Physical AI applications will be a global strategic opportunity in the next 10 years,” He Xiaopeng said. Physical AI is at the forefront of the transition from mass - production implementation to large - scale explosive growth. Currently, XPeng has verified that the Scaling Law also applies to the field of physical AI, including autonomous driving and robots. XPeng will achieve mass production of Robotaxi and humanoid robots this year and start to cultivate the business ecosystem, transforming the leading physical AI technology and applications into a new engine for revenue and profit growth.

At the XPeng Q1 2026 earnings conference held that evening, He Xiaopeng and the XPeng management responded to questions related to sales volume, gross profit, overseas market business, Robotaxi business, and robot business. The following is a summary of the Q&A content at the earnings conference:

Sales Volume and Gross Profit Margin: The Gross Profit Margin in Q2 is the Same as that in Q1

Q: How is the overall order performance of the XPeng GX currently? What is the steady - state sales target for the GX set by the management? What is the gross profit margin per vehicle?

A: The newly launched GX model has received a warm response in the market, exceeding the management's expectations. The waiting period for the pure - electric flagship version has exceeded 30 weeks and is still growing rapidly; the flagship version accounted for over 80% of the orders in the initial stage and is still the main sales force. It is worth noting that the initial proportion of the Max version in the GX orders is less than 5%. The data of the extended - range models are lower than those of the pure - electric models but are approaching them, especially after we strengthened the marketing in the northern and western regions.

We are making every effort to promote the support of the supply chain and the ramping up of production capacity. At the same time, we also very much hope to launch high - quality products and services to stabilize the long - term delivery data of the GX. In other words, we pay more attention to the continuous delivery of the GX. As a flagship product, the GX has a good gross profit margin per vehicle. Except for one SKU whose gross profit is slightly lower than expected, the gross profits of the other configuration versions are higher than expected.

Since this year, all our new cars will pay special attention to two dimensions: First, how to formulate configurations and clarify prices on the commercial side to pursue appropriate business quality; second, we do not pursue short - term explosive growth while ignoring long - term sales. We pursue more stable long - term sales. Therefore, we have established a new system covering modular management of the supply chain, production capacity ramping up, and supply chain security. Starting from the GX, we hope to better balance business value and scale and achieve more stable long - term sales.

Q: Although the increase in the sales volume of the GX model and the overall sales volume can drive up the gross profit margin, at the same time, there will also be an increase in raw material costs. What is the expected gross profit margin of XPeng in the second quarter?

A: The overall gross profit margin in the first quarter was basically the same as that in the fourth quarter of last year. We have indeed noticed a certain increase in costs, such as the increase in the prices of new storage products and battery raw materials, which have been partially reflected in our quarterly reports. It is expected that the subsequent quarters will continue to be affected.

The flagship SUV GX launched in the second quarter will start delivery in the subsequent quarters. The gross profit margin of the GX model is one of the highest in our existing product line. Therefore, from the perspective of the product structure, the product structure in the second quarter and the second half of the year will be optimized. Based on this, we expect the overall gross profit margin level in the second quarter to be basically the same as that in the first quarter.

Q: What is the trend of the revenue from XPeng's service business? Is there a possibility of expanding the technology authorization with partners overseas?

A: Realizing technology monetization and completing technology commercialization through cooperation is a very attractive business direction for us. Relying on the company's self - developed technology reserves, we are very open to exploring such technology commercialization opportunities. Currently, we still maintain our previous guidance. The total revenue scale brought by technology services and intellectual property authorization in 2026 is expected to be the same as that in 2025. Starting from the second quarter of this year, we will start to deliver a large number of Turing chips to our partner Volkswagen.

Overseas Market: The Profit Margin is Significantly Better than that in the Domestic Market

Q: What is the growth trend of the overseas market? What will be the contribution of the overseas market to XPeng's sales volume and profits in the next three years?

A: The overseas market is one of XPeng's four important strategic directions. It is expected that within the next five years, XPeng's overseas sales volume will account for 50%, and the revenue and profit contribution will exceed half. Currently, XPeng only has 2 models on sale overseas. With the launch of 4 global models by XPeng in the second half of this year, the globalization speed of XPeng will increase significantly in 2027 and 2028.

Therefore, whether in terms of hardware or software, channels or services, local charging capabilities or super - charging capabilities, we will invest huge amounts of money in the automotive and robotics fields. This year, our R & D investment in automobiles is mainly focused on the overseas market. I am confident that XPeng's overseas business will grow at an accelerated pace in the next three years.

First of all, the proportion of the latest monthly overseas sales has approached 20%, while the proportion for the whole of last year was about 10%. It is not difficult to see that the proportion of international sales in our global sales has increased significantly. Secondly, the profit margin of the overseas business is significantly better than that in the domestic market, making a positive contribution to the net profit.

The new models we launched for the global market have not been officially launched yet, so we expect this growth momentum to continue throughout the year. Therefore, I think the 20% contribution ratio will remain stable throughout the year; of course, the Chinese market has also shown signs of growth.

Q: What is the approximate proportion of XPeng's local production overseas? Are there differences in the proportions in different regions?

A: In terms of local production, we currently have two vehicle manufacturing plants in Southeast Asia, located in Indonesia and Malaysia respectively, mainly to meet the local market demand. At the same time, we have reached a cooperation with Magna in Austria to set up a factory there to produce vehicles for the European market. This year, we will expand the production capacity of these three production bases simultaneously, and the local production capacity will also be used to produce new models.

In the future, most of the models we sell in the European market will be produced locally; for markets where we have not yet established production plants, we will continue to use the existing business model. However, as our sales volume and market share in some large markets continue to increase, we will also actively explore plans to further expand local production capacity.

Robotaxi: Thoroughly Run it in Guangzhou First, then Promote it Domestically and Overseas

Q: What is the situation of Robotaxi's operation in China and overseas? What is the impact of the tightened domestic regulations on Robotaxi? Will the B - end operation of Robotaxi have an impact on C - end sales?

A: The tightened domestic regulations have not affected the company's overall rhythm. Robotaxi is regarded as a huge business opportunity after 2028. At the current stage, the focus is on using existing models for rapid R & D and experiments to verify the VLA 2.0 technology at home and abroad.

In China, we conduct rapid R & D and experiments through current models and will launch an economical Robotaxi model in 2027 to complete product demonstration and business verification. We only produce products and collect commissions and do not directly participate in the operation, leaving the operation work to our partners. XPeng's Robotaxi is targeted at the global market and has great commercial value.

Currently, the R & D and testing of Robotaxi have a positive promoting effect on C - end passenger car sales. XPeng's VLA will provide different intelligent assisted driving strategies. The technological achievements of the low - takeover - rate mode will also feed back into the C - end intelligent driving experience. In the future, the B - end and C - end markets will gradually separate, forming different transportation and travel tracks.

Q: Does Robotaxi have specific plans and time nodes for expanding to other cities? And what are the specific plans for applying for licenses?

A: Currently, XPeng's Robotaxi has only obtained a license and is being tested in Guangzhou. We hope that after successfully running the entire technology product and business model in Guangzhou, we will expand to other domestic cities and overseas through our partners.

Previously, we have received a large number of requests from domestic and overseas partners. We will observe the overall progress in the next year and launch an economical Robotaxi vehicle and a better investment plan.

Humanoid Robot Iron: Full - Stack Self - Development of Hardware and Software Except for the Battery Cell

Q: What are the differences and advantages of XPeng in the hardware cost of the humanoid robot? Will it enter the overseas market in 2027?

A: Our robots encounter many different logics in the mass - production process compared with the mass - production of automobiles and even flying cars. The current hardware of humanoid robots does not consider a series of issues such as anti - collision safety, human - machine interaction safety, and how to coexist safely with humans in the human world. At the same time, the current robots do not consider reliability, stability, and maintainability and are mostly at the consumer level. In addition, many robot companies do not consider how to achieve large - scale production (Scaling up) and how to solve the problems of yield rate and quality in the supply chain. In addition to hardware, at the software level, whether the data is stored locally or in the cloud, and if in the cloud, how to solve a series of problems such as data privacy, traffic, and computing power delay need to be considered. Therefore, we are a robot company that has achieved full - stack self - development of hardware and software except for the battery cell. The initial cost structure of the robot is similar to that of an automobile. In the long run, there will be more cost - effective solutions.

Similar to automobiles, our first product will consider globalization from the beginning of R & D. First of all, from the perspective of assisting or even replacing jobs, the sales logic of robots may be more applicable globally than in China. Secondly, we have made a lot of efforts in how the hardware and software adapt to overseas policies, including data privacy and comprehensive usage costs.

Q: Give examples of the application of the humanoid robot in XPeng stores and other commercial scenarios.

A: Our robot is different from most robots. We hope it can be used in an environment where it interacts with people, so many of the environments we consider are centered around commercial environments. Our initial thinking was in the direction of guiding and promoting. It can guide customers in the store and introduce the company and product performance, while test drives and signing orders are handled by humans. On this basis, we hope to think from the perspective of sales, such as cashiers and retail positions.

In XPeng's robot system and commercialization path, we will focus on in - depth research on guiding and promoting. At the same time, we open up cooperation with partners. They may have different job requirements and will jointly generate data with us for pre - training and post - training, and form different models. These models will be put into the external cooperation part of the robot for download and activation.

We have also discussed the future commercialization of the robot. The pricing logic of the robot is similar to that of a vehicle. Its sales price will be higher, and the robot will have a good gross profit on the hardware. In terms of software, the use of the robot in the cloud also requires tokens. We hope that the robot can take a step forward in the software subscription - based charging model. We have also been considering the commercial logic of how customers use, why they buy, and why they will get value.

Physical AI: From Scale Effect to Network Effect, then to Ant Colony Effect

Q: Is there a trend change in XPeng's VLA2.0 and OTA updates in the near future? How can the commercialization of physical AI be realized?

A: XPeng's VLA and VLM will be divided into two important stages. In the third quarter, XPeng will release the VLA 2.0 version, which will be “smarter”, greatly increasing the upper limit, enhancing the generalization ability, and reducing the takeover rate. At the end of this year,