Xpeng, a leading Chinese electric vehicle (EV) maker, recently reported its financial results for the fourth quarter of 2024, showcasing record revenue and a narrower net loss. The company’s revenue for the quarter reached RMB 16.11 billion ($2.21 billion), surpassing analysts’ estimates and demonstrating a significant increase from previous quarters.
The increase in revenue was primarily driven by a surge in vehicle sales, with Xpeng delivering a record 91,507 units during the fourth quarter. This marked a substantial year-on-year and quarter-on-quarter increase in deliveries, reflecting the company’s strong performance in the EV market.
Despite the positive revenue growth, Xpeng reported a net loss of RMB 1.33 billion in the fourth quarter, which was lower than analysts’ expectations. The company attributed the decrease in net loss to various factors, including improved cost management and higher sales volume.
In terms of financial performance, Xpeng’s gross margin slightly decreased to 14.4 percent in the fourth quarter, compared to the previous quarter. However, the company’s vehicle margin saw a significant improvement, reaching 10.0 percent during the same period.
Xpeng’s research and development expenses increased in the fourth quarter, reflecting the company’s efforts to expand its product portfolio and support future growth. Similarly, selling, general, and administrative expenses also rose due to higher sales volume and commission payments to franchised stores.
Looking ahead, Xpeng provided guidance for the first quarter of 2025, expecting deliveries to be between 91,000 and 93,000 units. The company also projected revenue in the range of RMB 15 billion to RMB 15.7 billion for the same period, indicating strong year-on-year growth.
Overall, Xpeng’s solid performance in the fourth quarter of 2024 underscores its position as a key player in the EV market. With a focus on innovation, cost management, and expanding its product offerings, the company is well-positioned for continued growth and success in the future.
