XPeng Stock Falls 5% Toward Two-Year Low as Chinese Stocks Slide After CATL Flags Slower Auto Sales Growth

NEW YORK — Shares of Chinese electric vehicle maker XPeng fell more than 5% in early trading Wednesday, giving back most of Tuesday's gain and moving close to the lowest level in two years.

The New York-listed shares fell 54 cents to $9.37, giving the company a market value of about $9 billion. On Tuesday, the stock rose about 7.6% to $9.91. Its 52-week low is $9.18.

XPeng did not announce any new company-specific news.

CATL results weigh on autos

The decline came as Chinese stocks fell broadly. CATL, the world's largest EV battery maker and a key supplier to Chinese automakers, dropped about 10% after reporting much slower third-quarter profit growth. CATL cited fierce competition and slower Chinese car sales.

That raised new concerns about China's crowded EV market, where price wars have squeezed profits for many companies. The Shanghai Composite fell 0.6%, and Hong Kong's Hang Seng Index dropped 0.9%. Lidar supplier Hesai Group also fell more than 8%.

A tough 2026

XPeng's stock has fallen sharply this year. It closed at a two-year low in Hong Kong and New York earlier this month and has lost more than half its value in 2026. Over the past 52 weeks, the U.S. shares have traded between $9.18 and $28.24.

The slide began with weak deliveries early in the year. XPeng delivered 20,011 vehicles in January, down 34% from a year earlier, and 15,256 in February, its lowest monthly total since August 2024.

Sales have improved since then. In September, XPeng delivered more than 40,000 vehicles, according to Chinese media reports. The launch of its GX large SUV in May also brought strong early orders.

Losses and analyst downgrades

Profitability is still a concern. XPeng's second-quarter revenue of 19.74 billion yuan missed analyst estimates, and its loss was larger than expected. The stock fell more than 8% after that report.

On Sept. 29, JPMorgan downgraded XPeng to neutral from overweight and cut its price target on the U.S. shares to $11.50 from $24.

Some large investors have reduced their holdings. BlackRock cut its stake by about 23.5% in the second quarter.

Betting on AI and robotics

XPeng calls itself a "Physical AI" company and is expanding beyond cars into autonomous driving, robotaxis and humanoid robots. Its robotics unit recently raised more than $900 million at a valuation above $6.3 billion.

The company is also expanding internationally. It showed its G9L SUV at the Paris Motor Show this month and is rolling out driver-assistance software in Europe.

Investors have been unsure whether these long-term bets justify the losses XPeng continues to report while it competes in a difficult domestic car market. Last week, the company disclosed restricted stock awards for employees, though analysts did not link those awards to the stock's decline.

What's next

XPeng is expected to report third-quarter results around mid-November. Investors will watch for:

delivery and profit margin trends, the impact of China's EV price war, progress in robotics and autonomous driving.

The company's October delivery numbers, due in early November, will also show whether recent sales gains are continuing.