Xpeng Q2 Revenue Rises 108% on Record Deliveries and Narrowed Loss

Xpeng Inc., the Chinese electric vehicle manufacturer, reported a record second-quarter revenue of 18.27 billion yuan ($2.55 billion), driven by a significant increase in vehicle deliveries. During the three months to June, the company delivered 103,181 vehicles, marking a 242% year-on-year increase and setting a new company record [1]. This robust performance helped narrow Xpeng’s net loss to 480 million yuan, the lowest since 2020, a 63% improvement from the same period in 2024 [2]. The company also reported a strong gross margin of 17.3%, up from 14% in the prior-year period [3].

Looking ahead, Xpeng provided a bullish third-quarter outlook, forecasting revenue between 19.6 billion and 21 billion yuan ($2.73 billion to $2.89 billion), representing a 99% to 108% year-on-year increase [4]. The company expects to deliver between 113,000 and 118,000 units during the quarter, which would be a 143% to 154% rise compared to the same period last year. These projections highlight Xpeng’s continued momentum despite the ongoing price war in China’s highly competitive EV market [1].

The company attributes its improved performance to a combination of cost-cutting measures and a more favorable product mix, which has pushed its vehicle margin to 14.3%, double the level seen a year earlier [2]. Xpeng has also increased its research and development spending by 50% year-on-year to 2.2 billion yuan, focusing on new models and self-driving technology. A key initiative is the in-house development of the Turing chip, specifically designed for autonomous driving systems [3]. Analysts believe that mass production of the Turing chip could be a pivotal step in Xpeng’s broader intelligent driving ambitions [5].

In addition to technological advancements, Xpeng is strengthening partnerships to expand its market presence. Its collaboration with Volkswagen has expanded beyond battery-electric vehicles to include plug-in hybrid and gasoline platforms, further diversifying its technology offerings and production capabilities [2]. This strategic alignment is expected to help Xpeng navigate the challenging market environment, where companies are competing not only on price but also on innovation and integration.

Xpeng’s cash reserves also provide a financial buffer to support its ongoing investments. The company ended the second quarter with 47.6 billion yuan in cash, up from 42 billion yuan at the end of 2024 [1]. This liquidity positions Xpeng to continue investing in new technologies and models while maintaining its delivery growth.

The company’s positive performance was reflected in its stock price, with shares rising more than 4% following the earnings update. Xpeng’s stock reached a 2025 high of $21.08, outperforming broader EV sector declines and attracting both speculative and institutional interest [3]. Analysts have noted that Xpeng’s strategic focus on AI and autonomous driving, combined with its improved cost structure and delivery numbers, positions it as a key player in the AI-driven EV space [2].

Despite the challenges, including weakening consumer sentiment in parts of the Chinese economy, Xpeng remains optimistic about its future. The company believes that a combination of AI integration, tighter partner collaboration, and continued cost reductions will enable it to maintain its competitive edge and move closer to profitability [2]. If the third-quarter projections are met, Xpeng is likely to consolidate its position as one of the leading EV manufacturers in China’s increasingly crowded and technologically driven market [1].

Source: [1] Xpeng - Can AI-Powered Ambitions Fuel a New Bull Run? (https://www.ainvest.com/news/xpeng-surges-4-82-ai-powered-ambitions-fuel-bull-run-2508/)

[2] XPeng Shrinks Loss on Record Sales, Solid Margins (https://www.marketscreener.com/news/xpeng-shrinks-loss-on-record-sales-solid-margins-update-ce7c51ddd888f52c)

[3] XPeng Motors expects its Q3 revenue to double, with the (https://news.futunn.com/en/post/60817299/xpeng-motors-expects-its-q3-revenue-to-double-with-the)

[4] Earnings live: Home Depot results miss, Palo Alto Networks ... (https://uk.finance.yahoo.com/news/earnings-live-home-depot-results-miss-palo-alto-networks-stock-pops-tesla-rival-xpeng-rises-114118253.html)

[5] “XPeng’s in-house Turing chip, once mass-produced, could be a pivotal step in the company’s intelligent driving ambitions.” Rosalie Chan, analyst at research firm Third Bridge (https://coinmarketcap.com/community/articles/68a4e5a4c8376b63fb7b6275/)