XPENG-W stock experienced a significant decline of 5.01% during intraday trading on Friday. The sharp drop reflects growing investor concerns about both the broader Chinese automotive industry and the company's specific financial performance.

The movement follows a report from Goldman Sachs, which accelerated its earnings downgrade trend for China's auto sector. The investment bank cut its domestic passenger vehicle sales forecast by 5% and now projects a 9% year-over-year decline in domestic retail passenger vehicle sales. This negative industry outlook has contributed to a broad sell-off in the automobile manufacturers sector.

At the company level, XPeng's recent financial results have undermined market confidence. The company reported a substantial Q1 net loss of RMB 1.784 billion, with revenue declining 17.6% year-over-year and vehicle deliveries dropping 33.3% year-over-year. These figures indicate significant challenges in the company's near-term profitability recovery, adding pressure to the stock price during the trading session.