TLDR:
- XPeng’s Q3 2025 revenue soars by 101.8%, driven by booming vehicle sales.
- Vehicle deliveries jump 149.3% as XPeng expands infrastructure and sales.
- Despite losses, XPeng narrows net loss and improves margins in Q3 2025.
- XPeng’s strong cash reserves set the stage for future growth in the EV market.
- 116,007 vehicles delivered in Q3 2025, marking a major milestone for XPeng.
XPeng Inc. (XPEV) shares dropped by 8.10% to $22.99 after announcing its financial results for the third quarter of 2025.
XPeng Inc., XPEV
The company reported substantial revenue and vehicle sales growth. The third-quarter results reflect a remarkable 149.3% increase in vehicle deliveries compared to the same period last year. XPeng’s revenue surged by 101.8%, demonstrating the company’s ability to expand even as the market fluctuates.
Revenue and Vehicle Sales Surge
XPeng achieved a total revenue of RMB 20.38 billion (US$2.86 billion) for Q3 2025, marking a 101.8% year-over-year increase. Vehicle sales alone contributed RMB 18.05 billion (US$2.54 billion), showing a 105.3% rise from the same quarter in 2024. This sharp increase reflects a robust demand for XPeng’s electric vehicles and an expansion of the company’s sales network.
The number of vehicles delivered in the third quarter reached 116,007, a significant jump from 46,533 during the same period in 2024. The company’s expansion of its physical sales network, now comprising 690 stores across 242 cities, has contributed to this success. XPeng’s growing charging infrastructure, with 2,676 self-operated stations, further supports its increasing delivery figures and customer accessibility.
XPeng’s vehicle sales growth reflects strong momentum in its product lineup, with increased market penetration and enhanced consumer interest. This growth aligns with the company’s strategic investments in expanding its manufacturing capacity and infrastructure, helping it stay competitive in a rapidly evolving EV market.
Improvement in Profitability Despite Losses
While XPeng showed impressive revenue growth, its profitability remains a work in progress. The company posted a net loss of RMB 0.38 billion (US$0.05 billion) for the third quarter of 2025, a significant improvement from a loss of RMB 1.81 billion in the same quarter of 2024. Although the company has yet to turn a profit, the reduced loss signifies a positive trend toward improving operational efficiency.
XPeng’s gross margin rose to 20.1% in Q3 2025, up from 15.3% a year earlier. This indicates better profitability from its vehicle sales. The vehicle margin, which measures gross profit as a percentage of vehicle sales revenue, also improved, reaching 13.1% compared to 8.6% in Q3 2024. Despite a small decline from the previous quarter, these margins reflect the company’s ability to drive efficiency and scale operations.
The company’s non-GAAP net loss narrowed further, dropping by 90.1% from Q3 2024. This was mainly due to reduced costs and more efficient operations. XPeng’s continued focus on reducing its losses while increasing its sales volume positions the company well for future profitability.
Strong Cash Position to Support Future Growth
XPeng maintains a healthy cash position, with RMB 48.33 billion (US$6.79 billion) in cash and equivalents as of September 30, 2025. This represents a slight increase from the previous quarter, reflecting the company’s strong liquidity. The ample cash reserves give XPeng flexibility to continue investing in product development, expanding its EV lineup, and scaling its production capacity.
The company’s growing financial strength allows it to weather potential market fluctuations and pursue long-term growth opportunities. As XPeng works toward improving its profitability, its solid cash position will be key to supporting its ambitious goals. With increasing vehicle deliveries and expanding infrastructure, XPeng is poised to further solidify its position in the global EV market.
XPeng’s strategic initiatives and financial performance point to a promising future. The company’s ability to drive significant revenue growth, improve its margins, and maintain strong liquidity sets the stage for continued success in the evolving electric vehicle industry.
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