EV Sector Roundup: XPEV, BYDDF and RIVN

2026 got off to a rocky start for electric vehicle (EV) manufacturers. Sales slumped after the two biggest EV markets – China and the US – slashed EV tax credits, with an economic slowdown in China further dampening sales.

But things are looking up. In Q2 2026, 50 countries set records for EV sales, according to a July report on the EV sector from the International Energy Agency. It noted the Iran conflict and the associated energy crisis have “clearly reinforced the case for EVs as a way to address energy security and fuel cost concerns,” and “may therefore further accelerate ongoing shifts in global car markets towards more electrification.”

EV sales have more than doubled year-on-year in Latin America and Asia Pacific excluding China; they represent nearly 30% of new car sales in Europe, and 60% of new car sales in China. The momentum is expected to continue, with JD Power projecting that EVs could comprise the majority of new car sales by 2033, and account for 80% of the market by 2040. 

There is one clear exception: the US. EVs have represented under 7.5% of new car sales in the US for each of the 10 months since the elimination of federal tax credits, and while rising fuel prices have seen an increase in purchases of hybrid vehicles and used EVs, new EV sales continue to lag. 

In the age of artificial intelligence (AI), however, sales are just part of the picture. Let’s examine three EV names – XPeng [XPEV], BYD [BYDDF] and Rivian [RIVN] – to chart possible paths forward for the broader market.  

XPeng’s embodied AI dreams

Reporting Q2 earnings on 24 August, XPeng missed both top- and bottom-line estimates, with non-GAAP EPS of -$0.19 and revenue of $2.91bn, up 8% y/y. Vehicle deliveries rose 65% sequentially but stayed flat on a y/y basis, to 103,295 units, and overseas deliveries exceeded 20,000 units for the first time, with international sales representing 25% of total revenue in the first half of the year. For Q3 the company is targeting 115,000-121,000 deliveries and total revenues of RMB21.7bn-23.4bn. The disappointing earnings sent XPEV shares down 8.3% and sparked a wider sell-off among EV stocks.

The same day, however, XPeng provided investors with a silver lining. Supported by Tencent [TCEHY] and Alibaba [BABA], its robotics arm raised $900m in the largest single-round private financing recorded in China’s embodied AI sector, giving it a valuation of $6.3bn. The proceeds are expected to fund the development of physical AI models, build manufacturing facilities and support global expansion, with its flagship robot, named Iron, set for mass production later in 2026. 

In the long run, robots could prove a superior business line to EVs. XPeng Co-President Brian Gu has said that he believes XPeng’s robots will deliver a hardware gross margin of 50%, compared to the 12.1% gross margin of its core vehicle segment logged in Q2. 

As of 25 August, XPEV shares were down 43.22% in the year to date, and down 51.16% in the past 12 months.

BYD looks abroad

The end of tax exemptions, fallout from a vicious price war and a slowing domestic economy have all weighed on China’s EV market, forcing its biggest names to look abroad for growth prospects – indeed, Chinese automakers account for two-thirds of global EV sales in Q2 2026. 

The world’s largest EV maker, BYD, continues to lead the pack. While it saw a 35% drop in sales in its home market over the first seven months of 2026, its overseas sales surged 79% from the same period in 2025. In July it recorded its third consecutive increase in monthly sales, at 22%, with 419,211 vehicles sold. A 9% drop in domestic sales was more than offset by a record 179,841 units sold in overseas markets, representing expansion of 124%. It has made significant inroads in Latin America and Europe, with Brazil and the UK representing its biggest markets outside of China. While competition remains fierce in its home market, BYD looks set to leverage its expansion abroad to maintain its market lead. 

BYD is expected to report Q2 2026 earnings on 28 August. 

BYDDF shares were down a marginal 1.89% in the year to date, as of the 25 August close, and down 19.61% in the past 12 months. 

Rivian’s R2 rally

The US’ second largest EV maker is often branded the “anti-Tesla”, as we detailed in our latest piece on the stock, but its trajectory resembles that of many EV makers, both at home and abroad. While CEO RJ Scaringe has founded a robotics company, Mind Robotics, it remains a separate firm and, unlike either Tesla [TSLA] or XPeng, focuses on industrial robots, rather than humanoid robots. 

Side projects aside, a new release and rising sales have shown that Rivian’s sights are still set firmly on the EV market. 

The first deliveries of its R2 electric SUV began on 9 June, with premium and standard versions of the model set to roll out in late 2026 and early 2027, respectively. Management raised its FY2026 vehicle deliveries of 65,000-70,000 on the back of the new release’s popularity, and while it allowed for the launch to negatively impact Q3 profit, it expects production and delivery to ramp up in Q4. 

Q2 results were positive, with revenue of $1.66bn and GAAP EPS of -$0.63 beating estimates of $1.57bn and -$0.78, respectively. Importantly, $515m of revenue came from software and services and $308m came from its joint venture with Volkswagen [VWAGY]. The company produced 12,613 vehicles and delivered 12,194, above its 9,000-11,000 target. Management also emphasised its partnership with Amazon [AMZN], which has more than 40,000 Rivian electric delivery vans in its fleet. In terms of autonomous driving, Rivian expects to achieve point-to-point capabilities by year-end, and “hands-off, eyes-off” capabilities in 2027.

In short, things are looking up for Rivian as it benefits from its increasingly diversified endeavours. Even so, RIVN shares are down 15.07% in the year to date, but up 27.88% in the 12 months to 25 August. 

Long and winding road: XPEV vs BYDDF vs RIVN

These three firms represent three distinct paths within the wider EV market. BYD is leveraging its scales and brand recognition to expand overseas, even as domestic sales lag. XPeng appears to be pivoting from its core automobile business to robotics, leveraging its experience with heavy manufacturing and physical AI. Rivian, meanwhile, is replacing sluggish US consumer demand with orders from companies, both for EVs and robotaxis. 

This is how the three stocks currently compare.

Source: Yahoo Finance

Conclusion

By some estimates, combustion engine vehicles are likely to go the way of the dinosaurs – eventually. Until then, however, the EV market has entered a new phase in which the road forward is less clear, as demonstrated by the divergent trajectories of XPeng, BYD and Rivian. The lack of government support in the US could see its EV names stagnate or pivot to new, more profitable segments; meanwhile, a crowded domestic market has pushed China’s biggest names to capture growth through expansion abroad. And, with many firms leveraging their expertise in heavy manufacturing and physical AI by targeting robotics – both in their taxi and humanoid forms – it could be that the real future of the EV market lies in a different sector entirely. 

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