Xpeng Reports Record Quarterly Revenue, Net Loss Narrows to 5-Year Low
Xpeng (NYSE: XPEV) announced today that it has achieved record quarterly revenue and significantly reduced its net loss to the lowest level in five years.
The company reported a net loss of RMB 480 million ($70 million) for the second quarter, marking a substantial improvement from previous quarters. This is the lowest net loss recorded since the third quarter of 2020.
The financial results for the second quarter of 2025 were impressive, with total revenues reaching RMB 18.27 billion (US$2.55 billion). This represents a remarkable increase of 125.3% compared to the same period in 2024 and a 15.6% increase from the first quarter of 2025.
Vehicle sales were the primary driver of revenue growth, with sales totaling RMB 16.88 billion (US$2.36 billion) for the second quarter. This marked a 147.6% increase from the same period in 2024 and a 17.5% increase from the previous quarter. The strong performance in vehicle sales was attributed to higher deliveries during the quarter.
In addition to vehicle sales, revenues from services and other sources amounted to RMB 1.39 billion (US$0.19 billion) for the second quarter. While this represented a 7.6% increase from the same period in 2024, there was a slight decrease of 3.5% from the previous quarter. This fluctuation was primarily due to changes in revenue from technical research and development services.
Cost of sales for the second quarter totaled RMB 15.11 billion (US$2.11 billion), reflecting a 116.6% increase from the same period in 2024. Despite the increase in costs, Xpeng managed to maintain a gross margin of 17.3%, an improvement from previous quarters.
The company’s focus on cost reduction and product mix optimization contributed to a vehicle margin of 14.3% for the second quarter, a significant increase from previous periods. However, research and development expenses also saw an increase, reaching RMB 2.21 billion (US$0.31 billion) for the quarter.
Looking ahead, Xpeng has set optimistic targets for the third quarter of 2025. The company expects deliveries to range between 113,000 and 118,000 vehicles, representing a substantial year-over-year increase. Additionally, total revenues are projected to be between RMB 19.6 billion and RMB 21.0 billion, indicating a significant growth trajectory.
Overall, Xpeng’s strong performance in the second quarter and positive outlook for the future demonstrate its continued growth and potential in the electric vehicle market. Investors and industry analysts will be closely monitoring the company’s progress as it strives to achieve its ambitious targets and solidify its position as a key player in the industry.
