XPeng Expects to Turn a Profit in the Fourth Quarter

As XPeng Motors' revenue, gross margin, and delivery volume gradually increase, XPeng Motors Chairman and CEO He Xiaopeng stated that XPeng Motors is confident in achieving a leading scale and that its operations will enter a new stage of profitable self-sustenance.

XPENG Motors' latest Q2 2025 financial report shows that XPENG Motors' total revenue for the second quarter was 18.27 billion yuan, an increase of 125.3% compared to the same period in 2024, and a 15.6% increase compared to the first quarter of this year. Deliveries in the second quarter were 103,100 units, a year-on-year increase of 241.6%; compared to 30,200 units in the same period of 2024, an increase of 241.6%. Currently, XPENG Motors has 677 physical dealership stores covering 224 cities, with a self-operated charging network of 2,348, including 1,304 XPENGS4 and S5 ultra-fast charging stations.

The company’s profitability has improved, with automobile sales revenue reaching 16.88 billion yuan in 2025, an increase of 147.6% compared to the same period last year. In the second quarter, the company’s overall gross margin rose to 17.3%, up 3.3% year-on-year; automobile gross margin reached 14.3%, an increase of 7.9% year-on-year. Net loss was 480 million yuan, narrowing from a net loss of 1.28 billion yuan in the same period of 2024 and a net loss of 660 million yuan in the first quarter.

XPeng Motors is expected to achieve single-quarter profitability in the fourth quarter of this year.

As of press time, XPeng Motors closed at $20.37 per share, down 1.78% from the previous day, with a total market capitalization of $19.377 billion.

He Xiaopeng, Chairman and CEO of XPeng Motors, stated that in the second quarter of 2025, XPeng Motors achieved record-high performance in key operational and financial indicators, including vehicle deliveries, revenue, gross margin, and cash position. By 2025, XPeng Motors has completed the upgrade of its next-generation smart and electrification technology platform, which will further enhance XPeng's technological leadership in the industry.

In the second quarter of 2025, XPeng Motors delivered 103,100 vehicles, representing a year-on-year growth of 241.6% and a quarter-on-quarter growth of 9.8%, setting a new record for single-quarter deliveries. As of July this year, XPeng Motors has delivered a total of 233,900 vehicles.

The increase in sales and delivery volumes is attributed to the continuous improvement of product layout. The launch of the 2025 XPeng X9, the all-new MONAM03Max, and the P7+ long-range Max version has driven the overall quarterly delivery volume. The introduction of the new XPeng G6 and G9, one targeting the young consumer market and the other solidifying its position in the mid-to-high-end market, along with the launch of the XPeng G7 in July and the pre-sale of the new XPeng P7, has further enriched XPeng's product matrix and market competitiveness. In July, XPeng delivered 36,700 vehicles. XPeng expects the market delivery volume in September to remain around 40,000 units. On the other hand, XPeng's sales network is continuously expanding, with an increase in the number of stores and the range of covered cities, effectively enhancing the brand awareness of XPeng.

One noteworthy point is that the gross margin of XPeng Motors rose from 6.4% in the same period last year to 14.3%, with a quarter-on-quarter increase of 3.8 percentage points, exceeding market expectations. The improvement in gross margin indicates that XPeng Motors' market sales scale is improving. Especially in the fiercely competitive new energy vehicle market, XPeng Motors is gradually stabilizing its downward trend and achieving a turnaround through product iteration, technology upgrades, and new product deployment.

Dr. Hongdi Brian Gu, Vice Chairman and Co-President of XPeng Motors, stated that in the face of fierce industry-wide price competition, XPeng Motors is committed to implementing a long-term and sustainable growth strategy. In the second quarter, the vehicle profit margin increased by 3.8 percentage points quarter-on-quarter to 14.3%, while the company's overall gross margin rose to 17.3%, reaching a new historical high. We are confident that we can not only accelerate scale growth but also continue to enhance the company's profitability. Thanks to the current improvement in gross margin, Wu Jiaming, XPeng's Vice President of Finance, stated that XPeng Motors aims to achieve an overall profitability target of 17% to 19% in the fourth quarter.

Moreover, the improvement in gross margin also benefited from the technical revenue brought by the expanded cooperation between XPeng Motors and the Volkswagen Group in electronic and electrical architecture technology. In the second quarter of 2025, XPeng's "technical revenue" amounted to 390 million yuan, an increase of 7.6% year-on-year; for the first half of the year, it reached 2.83 billion yuan, a year-on-year increase of 23.3%, accounting for 8% of the total revenue, which also boosted the gross margin for the first half of the year to 16.3%.

On August 15, XPeng Motors and Volkswagen Group announced that the regional control electronic and electrical architecture CEA, jointly developed by XPeng and Volkswagen, will expand its application scope. Starting from 2027, the CEA architecture will be extended from Volkswagen's locally developed pure electric vehicle models to include fuel and hybrid models manufactured in China. This development is expected to bring more continuous technical revenue to XPeng Motors and help improve its gross profit margin.

According to He Xiaopeng, in the fourth quarter of this year, XPENG Motors will launch its first Kunpeng Super Electric Vehicle model, the XPENG X9 Extended Range version. Afterwards, several more super electric vehicle models will be released, achieving a dual power layout of electric and hybrid vehicles. At the same time, the company plans to mass-produce vehicles supporting L4-level assisted driving functions by 2026, further improve the launch of hybrid models both domestically and overseas, and enhance the capabilities of the Turing AI intelligent driving system.

XPeng Motors expects that in the third quarter of 2025, new car deliveries are projected to reach 113,000 to 118,000 units, representing a year-over-year increase of 142.8% to 153.6%. The total revenue is expected to be between 19.6 billion to 21.0 billion yuan, reflecting a year-over-year growth of 94.0% to 107.9%.