XPeng sees demand rebound in Q2 2026, expects strong delivery growth in H2 2026 with new models and expansion.

XPeng reported a recovery in demand during Q2 2026 and anticipates further delivery growth in the second half of 2026, driven by new model launches and ongoing international expansion. The automaker may exceed its previous revenue guidance for Q2 2026 and has given robust delivery forecasts for Q3 2026. Despite a recent stock price drop to the low $12 range, XPeng's valuation remains attractive given its strong top-line growth potential. However, profitability may stay pressured due to higher costs in batteries, R&D, manufacturing, marketing, and investments in advanced technologies like robotaxis and flying cars. The stock is recommended as a buy mainly for contrarian investors with a long-term horizon and higher risk tolerance.