XPeng Reports Revenue Surge in Q2 2024

XPeng, a key player in China's electric vehicle market, has reported significant financial improvements, including a 60.2% increase in revenue to 8.11 billion yuan ($1.14 billion) in Q2 2024, despite a net loss that was narrowed to 1.28 billion yuan. The company posted a gross margin of 14%, up from a negative margin a year ago, and anticipates vehicle deliveries between 41,000 and 45,000 units in Q3, reflecting modest growth. XPeng's vehicle sales revenue also surged by 54.1% year-over-year, driven by a 30.2% rise in deliveries. Despite these gains, XPeng faced challenges from increased competition and a need to refresh its vehicle lineup. The upcoming launch of the MONA M03 sedan is part of its strategy to capture market share and counter rivals like BYD and Tesla. Additionally, the company is considering establishing a manufacturing plant in Europe to mitigate the impact of tariffs on Chinese EVs.