On May 28, following the release of XPeng Inc.'s (XPEV) 2026 first-quarter financial results, the company's co-founder, Chairman, and CEO He Xiaopeng, Vice Chairman and Co-President Gu Hongdi, Vice President Charles Zhang, Vice President of Finance and Accounting Wu Jiaming, and Head of Investor Relations Alex Xu participated in the subsequent earnings conference call to discuss key financial highlights and answer analyst questions.

The following is the full transcript of the earnings call:

Morgan Stanley Analyst Tim Hsiao: Congratulations on the market's enthusiastic response to the newly launched XPeng GX. I have two questions. The first is regarding the new GX model. We have observed that the GX model, launched a week ago, is experiencing strong sales across the board. Therefore, I would like to ask management about the total order volume at present. What are management's targets for steady-state sales volume, and at what approximate level? Also, how does management view the subsequent gross margin per vehicle for this model?

He Xiaopeng: To be honest, the performance of the GX model has exceeded our expectations so far; it has performed exceptionally well. We are seeing some very interesting data points. For instance, the current wait time for our "Pure Electric Flagship version" has already exceeded 30 weeks and is still growing rapidly.

From another perspective, initially, orders for the flagship version accounted for over 80%, and even now, the flagship version remains our highest-proportion sales variant. However, there are other interesting data points. For example, the proportion of the GX Max version is less than 5%, which is lower than we anticipated. Data for the extended-range version was initially lower than for the pure electric models but is now gradually converging with pure electric figures. Especially after we recently enhanced our marketing efforts in northern and western regions where we were previously less strong, we have observed many very interesting phenomena. We certainly hope the GX can become a top-three seller in the new energy large six-seater premium segment, creating a top-selling model in the market above 300,000 yuan.

Honestly, we are fully committed to driving supply chain support and ramping up production capacity. However, we also highly desire to deliver high-quality service and quality to stabilize the long-term delivery data for the GX model. Looking at it another way, I am most focused on the sustainability of the GX model. As XPeng's flagship model, the GX actually has a very good gross margin. When I previously communicated with media friends, I mentioned that "only one SKU's gross margin was worse than we expected," but in reality, all are better than our overall gross margin.

Let me add one more point. Starting this year, all our new vehicles will focus on two new aspects. The first is how to determine configuration, pricing, and pursue appropriate commercial quality; this is one of the tasks we have started this year. The second is that we do not pursue high initial sales followed by a decline later; we aim for more stable sales volume. Therefore, we will have a new system for managing the entire supply chain's modularity, ramp-up, and supply chain security. I believe, starting with the XPeng GX, we all hope to achieve a better balance between commerce and scale, along with more long-term steady-state sales volume.

Morgan Stanley Analyst Tim Hsiao: My second question concerns Robotaxi (autonomous driving taxi). Will the Robotaxi business further accelerate in the second half of this year? What are management's plans for the domestic operation and international expansion of the Robotaxi business? Additionally, how does management view the impact of the B2B Robotaxi business on the group's B2C passenger vehicle sales?

He Xiaopeng: From our perspective, Robotaxi represents a massive, entirely new commercial opportunity for 2028 and beyond. XPeng is currently working to validate it both domestically and globally. Therefore, our current overall pace is to deploy and perfect the VLA 2.0 platform in both the Chinese and overseas markets. In the Chinese market, we will conduct rapid R&D and testing using current vehicles. By 2027, XPeng will launch an economy model to establish a demonstration and commercial validation for Robotaxi.

XPeng's Robotaxi has two key characteristics. First, we only focus on the product and take a commission; we are not willing to directly handle operations, so we will have many partners. Second, XPeng's Robotaxi efforts are primarily focused on the global market. I believe there is enormous commercial value in the globalization of Robotaxi.

Furthermore, regarding your earlier question about whether we are concerned about the impact on B2C sales once the group engages in B2B business, I would like to add a few thoughts.

Firstly, our current testing, R&D, and experimentation with Robotaxi actually have a positive impact on the B2C side. This is because, subsequently, XPeng's VLA will offer users multiple different intelligent driving assistance strategies, such as an extreme speed mode or a low-intervention mode similar to Robotaxi. I believe that in the future, Robotaxi will gradually enter a phase where policies and regulations are progressively relaxed, enabling economical and commercial operation. At that point, Robotaxi will gradually separate from current B2C vehicle usage, becoming a second vehicle track. Robotaxi may evolve into a new form of transportation in other directions.

(To be continued...)