XPeng Faces Legal Scrutiny Following Sharp Drop in Vehicle Deliveries

Chinese electric vehicle maker XPeng is confronting legal challenges as a U.S. law firm initiates a probe into potential securities law violations. This development compounds existing investor unease, which had already been stirred by operational difficulties and significant downward pressure on the company’s share price.

Legal Investigation Launched

Pomerantz LLP has begun an examination of XPeng, prompted by the automaker’s recent delivery figures. The firm is assessing whether the company may have failed to disclose material business developments in a timely manner or engaged in improper business practices. In the intensely competitive EV sector, investors are particularly sensitive to any signs of volatile performance or communication lapses.

A Dramatic Monthly Decline

The catalyst for this scrutiny is a stark contraction in monthly deliveries. For January 2026, XPeng reported deliveries of just 20,011 vehicles. This represents a severe drop from the 37,508 units delivered in December 2025, amounting to a near-halving of volume within a single month. This precipitous decline has fueled market doubts regarding the company’s growth trajectory and the clarity of its communications with shareholders.

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

Share Price Reflects Mounting Pressure

The current market sentiment is clearly reflected in XPeng’s stock performance. Shares are now trading at 14.95 euros, a level that sits only approximately 6.8% above the 52-week low. Since the start of the year, the equity has accumulated a loss exceeding 14%. The coming weeks are viewed as critical for the company, as it seeks to alleviate concerns with more stable delivery numbers for February. The market is watching to see if this legal review will evolve into a protracted overhang on the stock.

Long-Term Strategy Meets Short-Term Hurdles

Amid these immediate challenges, XPeng continues to pursue its long-term technological roadmap. The company maintains substantial investments in artificial intelligence-driven mobility and smart driving capabilities, aiming to bolster its international standing. However, these strategic ambitions are currently being overshadowed by acute worries over short-term sales weakness. The outcome of the legal proceedings and the company’s ability to demonstrate a recovery in its core delivery metrics will likely dictate its near-term financial narrative.