Xpeng, a leading electric vehicle (EV) maker, recently reported its first-quarter financial results, showcasing a significant improvement in its operating conditions. The company’s revenue for the quarter reached RMB 15.81 billion ($2.18 billion), surpassing analyst estimates and marking a substantial increase of 141.5 percent from the same period last year.
The company delivered an impressive 94,008 vehicles in the first quarter, a remarkable 330.81 percent increase from the previous year. This figure exceeded the upper end of Xpeng’s projected range of 91,000 to 93,000 vehicles for the quarter.
Despite the strong performance in vehicle deliveries and revenue, Xpeng reported a net loss of RMB 660 million in the first quarter. However, this was the lowest loss recorded since the second quarter of 2020, showcasing a positive trend for the company.
One of the highlights of Xpeng’s first-quarter results was its record gross margin of 15.6 percent, representing a year-on-year increase of 2.7 percentage points. The company’s vehicle margin also saw a significant improvement, reaching 10.5 percent for the quarter.
The increase in gross margin was primarily attributed to ongoing cost reduction efforts and economies of scale driven by higher sales volumes. Additionally, Xpeng’s services and others margin improved to 66.4 percent, driven by higher gross margins from technical development and repair services.
In terms of expenses, Xpeng reported R&D expenses of RMB 1.98 billion for the first quarter, reflecting a 46.7 percent increase year-on-year. The company attributed this increase to investments in new models and technology development to support future growth.
Selling, general and administrative (SG&A) expenses for the quarter were RMB 1.95 billion, representing a 40.2 percent increase from the same period last year. The rise in SG&A expenses was primarily driven by higher commissions to franchised stores due to increased sales volume.
Looking ahead, Xpeng provided guidance for the second quarter, forecasting deliveries in the range of 102,000 to 108,000 units and revenue between RMB 17.5 billion to RMB 18.7 billion. These projections indicate significant year-on-year growth for the company.
As of March 31, 2025, Xpeng held cash and cash equivalents, restricted cash, short-term investments, and time deposits totaling RMB 45.28 billion, demonstrating the company’s strong financial position.
In conclusion, Xpeng’s first-quarter results reflect a positive trajectory for the company, with strong revenue growth, improved gross margins, and strategic investments in R&D and expansion. With a promising outlook for the second quarter and beyond, Xpeng continues to solidify its position in the EV market.
