By Al Root

Chinese electric-vehicle makers Li Auto and XPeng both reported weaker-than-expected first-quarter earnings. There was some good news for investors, though. Growth has been accelerating.

Li announced Thursday a per-share loss of 15 cents from sales of $3.3 billion. Wall Street was looking for a loss of 13 cents from sales of $3.2 billion, according to FactSet. A year ago, Li reported earnings per share of 7 cents from sales of $3.6 billion. Revenue was down despite rising sales. Li delivered 95,142 cars in the first quarter, up from 92,864 in the first quarter of 2025.

XPeng announced a per-share loss of 13 cents from sales of $1.9 billion. Wall Street was looking for a loss of 10 cents from sales of $1.9 billion. A year ago, XPeng reported a loss of 10 cents from sales of $2.2 billion. Revenue fell with unit sales. XPeng delivered 62,682 cars in the first quarter, down from 94,008 in the first quarter of 2025.

XPeng stock was up 3.8% in premarket trading at $17.07 a share, while S&P 500 and Dow Jones Industrial Average futures were down about 0.1%. Li's stock was down 3.4% at $15.25.

Results for both looked similar; still, one stock was up and the other was down. XPeng reported improving gross profit margins, which is one reason for the better reaction. Guidance was another factor.

For the second quarter, XPeng expects to sell about 103,000 cars, flat year over year. Li expects to sell about 97,500 cars, down 12% year over year.

Starting points might matter, too. Coming into Thursday, XPeng stock had fallen 19% this year. Li shares have declined 7%.

While the stock reactions were mixed, the outlooks do have some good news for investors. Including NIO, the three expect to sell about 313,000 cars in the second quarter, up 9% year over year, an improvement from the 5% year-over-year growth in the first quarter.

A healthy Chinese EV sector is important for Tesla. China is the world's largest market for new cars and new EVs. Things haven't been great so far in 2026. Overall, new car sales dipped about 7% in the first quarter, according to data tracked by Citi analyst Jeff Chung, so any signs of stability are welcome.

Through April, Tesla sold about 139,000 cars in China, down 15% year over year.

Tesla stock was down 1.6% in premarket trading at $433.51. Coming into Thursday, shares have been on a five-day winning streak.

Write to Al Root at allen.root@dowjones.com

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May 28, 2026 07:02 ET (11:02 GMT)

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