XPeng Shares Face Headwinds Amid Financing Push and Analyst Caution

Shares of Chinese electric vehicle maker XPeng are trading sharply lower today. The decline follows the launch of a new customer financing program and a revised assessment from analysts, who are characterizing 2026 as a transitional period for the automaker.

Market experts at Macquarie have adjusted their outlook for XPeng, reducing their price target from $32 to $26 per share. While maintaining an "Outperform" rating on the equity, the firm now views 2026 as a year of transition. The strategists cite a deceleration in domestic EV demand and the impending launch of up to four new vehicle models as key factors. This recalibration contributes to the current negative sentiment surrounding the stock.

New Financing Initiative Meets Market Skepticism

Adding to the pressure, XPeng recently introduced a seven-year, low-interest financing scheme aimed at reducing monthly payments for buyers. The market's reaction has been skeptical, with the stock shedding over two percent in pre-market trading alone. Investors appear unconvinced that such promotional tactics can generate sustainable demand in an intensely competitive sector.

Should investors sell immediately? Or is it worth buying XPeng?

Despite these near-term hurdles, the company's operational targets remain ambitious. XPeng is aiming for 550,000 to 600,000 vehicle deliveries in 2026. Its product rollout is aggressive, with seven new models slated for release in the first quarter, including four SUVs. Internationally, the company is deepening its focus on Europe, where sales of its AI-defined P7+ sedan are scheduled to begin in April.

Profitability and Long-Term Technology Bets

The path to consistent profitability remains a work in progress. For the third quarter of 2025, XPeng reported a gross margin exceeding 20% for the first time, alongside a significant jump in deliveries. However, the automaker continues to operate at a net loss. Analysts forecast a per-share loss of $0.23. The next quarterly results, for Q4 2025, are anticipated between March 17 and 20, 2026.

Beyond its core automotive business, XPeng is advancing several long-term technology initiatives. The company is developing proprietary AI chips and its VLA 2.0 autonomous driving system. By the end of 2026, it aims to begin mass production of humanoid robots. Potential technology licensing deals, such as a previously discussed partnership with Volkswagen, could eventually position XPeng as a high-margin technology supplier to other industry players.