XPeng’s Stock Faces Headwinds After Sluggish Start to the Year

Chinese electric vehicle (EV) maker XPeng has reported a significant slowdown in deliveries for the opening month of 2026, casting a shadow over its recent performance. The company is navigating this domestic sales dip while aggressively pursuing international growth and a major internal reorganization of its technology division. Market observers are questioning whether its intensified European strategy can swiftly reverse the current downturn.

The latest figures reveal a pronounced cooling in XPeng's delivery momentum. The company handed over 20,011 vehicles in January 2026, a figure that represents a substantial 34% decline compared to the same month last year. The drop is even more stark when measured against a robust December 2025, with deliveries falling by nearly 46.65% month-over-month. This sharp contraction underscores the fierce competitive pressures currently defining the global EV landscape.

Strategic Restructuring: Unifying AI Development

In a significant internal move announced on February 4, XPeng has consolidated its research and development efforts. The firm has merged its previously separate divisions for autonomous driving and smart cockpit technologies into a single entity dubbed the "General AI Center." This newly formed unit will be tasked with developing foundational AI models and the underlying infrastructure for XPeng's entire product lineup, as well as for future ventures into fields like robotics.

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

Global Push Amid Domestic Challenges

Despite the weak monthly numbers, XPeng's international expansion plans are proceeding at full throttle. A large-scale shipment of its new P7+ model to overseas markets commenced on February 2. The vehicle, available in both all-electric and range-extender variants, is scheduled to begin customer deliveries across 25 European countries starting in April 2026.

A particular focus within this European offensive is the United Kingdom. XPeng plans to launch the upgraded G6 SUV there during the current first quarter. The model has reportedly undergone over 20,000 technical modifications. Furthermore, the company's flagship seven-seater X9 model is slated to join the UK portfolio by the middle of 2026.

The automaker has laid considerable groundwork for this global ambition, having established a physical sales and service network spanning more than 1,000 locations across 60 countries. The upcoming catalysts for investor sentiment are now clearly identified: the initial European delivery figures for the P7+ in April, followed by the G6's market entry in Britain within Q1. The market will be watching closely to see if these launches can inject fresh momentum and offset the disappointing start to the year.