XPeng's Q2 2025: Unpacking Contradictions on Smart Driving, Profit Margins, and Robot Production Timelines

Record Deliveries and Revenue Growth:
- XPeng, Inc. reported 103,181 units in deliveries for Q2 2025, a 242% increase year-over-year.
- Revenues totaled RMB 18.27 billion, representing a 125.3% year-over-year increase.
- The growth in deliveries and revenue was driven by the success of new models like the MONA M03 Max and the G7, as well as strategic pricing and product segmentation.

Improved Gross Margin and Profitability:
- Vehicle gross margin increased by 3.8 percentage points quarter-over-quarter to 14.3%, with the overall gross margin reaching 17.3%.
- Net losses continued to narrow, and free cash flow exceeded RMB 2 billion.
- The margin improvement was due to cost reduction, product mix optimization, and enhanced supply chain management.

Innovation and New Product Launches:
- XPeng launched the G7, featuring in-house developed Turing AI SoC, and the upcoming P7, which received high presale orders.
- The company aims to introduce the X9 Kunpeng Super Electric Edition in Q4, marking its entry into the 'one vehicle, dual energy' era.
- These launches are part of XPeng's strategy to differentiate through advanced technology and maintain a competitive edge in the market.

Expansion into Global Markets:
- XPeng's overseas deliveries exceeded 18,000 units, growing over 200% year-over-year.
- The company expanded its global presence by delivering the first locally produced XPeng X9 in Indonesia.
- This growth is attributed to strong brand recognition in international markets and strategic global market integration.