TLDR
- Q2 2025 revenue reached RMB18.27 billion ($2.55B), up 125% YoY but slightly below estimates
- Deliveries hit 103,181 vehicles, up 241.6% from last year
- Gross margin rose to 17.3% and vehicle margin climbed to 14.3%
- Net loss per share narrowed to RMB0.20, better than analyst projections
- Q3 guidance: deliveries of 113k–118k units and revenue of RMB19.6–21B
XPeng Inc. (NYSE: XPEV) shares traded at $20.81, up 4.58% as of 1:44 PM EDT on August 19, 2025, following the release of its second-quarter earnings.
The Chinese electric vehicle maker posted results that topped analyst expectations in key operational metrics while showing notable improvement in profitability.
XPeng reported a Q2 2025 loss per share of RMB0.20, outperforming analyst forecasts of a RMB0.83 loss. Revenue surged 125% year-over-year to RMB18.27 billion ($2.55 billion), though it fell just shy of the RMB18.51 billion consensus estimate.
Record Deliveries and Expanding Margins
One of the quarter’s standout highlights was XPeng’s delivery volume. The company delivered 103,181 vehicles, a remarkable 241.6% increase from 30,207 units a year earlier. This growth was underpinned by strong demand and an expanding product lineup.
Profitability also improved significantly. Gross margin reached a record 17.3%, up 3.3 percentage points year-on-year. Vehicle margin climbed 7.9 points to 14.3%, boosted by cost reductions and an improved product mix. The company noted that vehicle margin has now improved for eight consecutive quarters, underscoring operational efficiency gains.
Q3 Guidance: Growth Momentum Continues
Looking ahead, XPeng projected Q3 deliveries between 113,000 and 118,000 units, representing growth of 142.8% to 153.6% compared to the prior year. Revenue guidance came in at RMB19.6–21 billion, slightly below market expectations of RMB21.1 billion at the midpoint.
Despite this shortfall, management emphasized its focus on sustainable growth. CEO He Xiaopeng highlighted record-high operational and financial metrics, including a strong cash balance of $6.64 billion to support platform upgrades and charging network expansion.
Industry Backdrop and Competitive Landscape
The strong performance comes against a backdrop of intense competition in the EV sector. Tesla and NIO remain close rivals in China’s fast-evolving electric vehicle market. The China Association of Automobile Manufacturers (CAAM) reported that July EV deliveries slipped 5% month-on-month to 1.26 million units, reflecting government pressure on automakers to prioritize profitability over aggressive discounting.
XPeng also announced plans to launch its first hybrid model, the X9 EREV, in Q4 2025. This vehicle, slightly larger than the all-electric X9, has been tested in 20 countries and 330 cities, signaling the company’s intent to push into global markets.
Performance Overview: XPEV vs. HSI
XPeng has significantly outperformed its benchmark. As of August 19, 2025, the stock has returned 75.65% YTD versus the Hang Seng Index’s 25.24%. On a one-year basis, XPEV is up 200.43%, compared to the HSI’s 42.99%. While its 3-year and 5-year returns remain negative, the recent turnaround has strengthened investor confidence.
