TLDR
- Xpeng reported Q3 loss of RMB0.16 per share, crushing analyst expectations of RMB0.57 loss
- Revenue climbed 101.8% year-over-year to RMB20.38 billion with 116,007 vehicles delivered
- Gross margin improved to 20.1% from 15.3% while vehicle margin hit 13.1%
- Q4 revenue guidance of RMB21.5-23.0 billion fell short of RMB25.09 billion consensus
- Shares declined roughly 2% in premarket trading following guidance miss
Xpeng reported impressive third-quarter results Monday but the celebration was short-lived. Conservative fourth-quarter guidance sent shares down approximately 2% in premarket trading.
The Chinese electric vehicle manufacturer posted a loss of RMB0.16 per share for Q3. Analysts had expected a much steeper loss of RMB0.57 per share. Revenue rose 101.8% from the prior year to RMB20.38 billion, slightly below the RMB20.63 billion estimate.
Vehicle sales accounted for RMB18.05 billion of revenue, marking a 105.3% year-over-year increase. Xpeng delivered 116,007 vehicles during the three-month period, up 149.3% compared to the same quarter in 2024.
The delivery growth outpaced revenue growth, suggesting strong momentum in unit sales. Vehicle sales also increased 6.9% sequentially from the second quarter.
Margin Expansion Continues
Profitability metrics showed clear improvement. The company’s gross margin reached 20.1%, up from 15.3% a year earlier. The second quarter had shown a gross margin of 17.3%, making this quarter’s performance the best yet.
Vehicle margin landed at 13.1%. This compared favorably to the 8.6% recorded in Q3 2024. However, it represented a slight decline from the 14.3% achieved in the previous quarter.
Xpeng maintained a solid financial position. The company ended September with RMB48.33 billion in cash, equivalents, restricted cash, short-term investments and time deposits. This was essentially unchanged from the RMB47.57 billion held at the end of June.
Chairman and CEO Xiaopeng He emphasized the record-setting nature of the results. “Vehicle deliveries, revenue, gross margin and cash on hand all reached new highs,” he said.
Revenue Guidance Falls Short
The market’s reaction centered on fourth-quarter projections. Xpeng forecasts deliveries between 125,000 and 132,000 vehicles. This implies annual growth of approximately 36.6% to 44.3%.
Total revenue is expected to range from RMB21.5 billion to RMB23.0 billion. Analysts had projected RMB25.09 billion, creating a substantial gap between expectations and guidance.
The revenue shortfall represents roughly 15% below consensus estimates. This disconnect likely drove the negative market reaction despite the strong Q3 performance.
Investment in Future Technology
Research and development expenses totaled RMB2.43 billion in Q3. This represented a 48.7% increase year-over-year, reflecting the company’s commitment to innovation.
He discussed upcoming initiatives including Robotaxi services and humanoid robots. Both projects are “advancing rapidly toward mass production,” according to the CEO. He expressed belief that Xpeng will evolve into “a global embodied AI company.”
The net loss for the quarter came in at RMB0.38 billion. On a non-GAAP basis, the company reported a net loss of RMB0.15 billion.
Both loss figures showed sequential improvement. The cash burn rate appears manageable given the company’s RMB48.33 billion cash position.
Xpeng projects Q4 vehicle deliveries of 125,000-132,000 units with revenue guidance of RMB21.5-23.0 billion, missing the RMB25.09 billion analyst estimate.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
