Xpeng Reports Record Q2 Revenue, Narrows Net Loss to 5-Year Low

Xpeng Inc. reported record quarterly revenue of RMB18.27 billion ($2.55 billion) for Q2 2025, a 125.3% increase year-over-year, driven by a 241.6% surge in vehicle deliveries. The company narrowed its net loss to RMB480 million ($70 million), the lowest since 2020, and improved gross margin to 17.3%, reflecting enhanced operational efficiency. Vehicle sales contributed RMB16.88 billion to revenue, growing 147.6% year-over-year, while revenues from services rose modestly due to increased parts and accessories sales. Despite the net loss, XPeng's strong cash position of RMB47.57 billion supports continued growth, including expansion of its sales and charging networks and new model launches. Analysts remain optimistic, projecting an EPS improvement and rating the stock as 'Outperform' with significant upside potential. Market activity shows elevated call option interest ahead of the earnings release, indicating investor anticipation of positive results.