XPeng Reports Record Q2 Vehicle Deliveries, Narrows Loss

Xpeng Motors reported strong financial and operational results for Q2 2025, with total revenue reaching RMB 18.27 billion, a 125.3% year-over-year increase, driven by a record 103,181 vehicle deliveries, which surged 241.6% from the previous year. The company narrowed its net loss to RMB 480 million from RMB 1.28 billion a year earlier, supported by improved gross margins of 17.3% and a vehicle margin increase to 14.3%, thanks to cost reductions and a shift toward higher-value models. Xpeng's expanding sales network now covers 677 stores across 224 cities, complemented by 2,348 charging stations, underpinning its growth and market penetration. Despite intense competition and regulatory challenges in China's EV sector, Xpeng remains confident in accelerating scale and profitability, with forecasts for Q3 deliveries between 113,000 and 118,000 vehicles and revenue of RMB 19.6 billion to 21.0 billion. The company’s focus on technology innovation and R&D investment is expected to sustain long-term growth, while its recent performance has reinvigorated investor interest and positioned it as a key player in China's evolving electric vehicle market. Analysts remain cautiously optimistic, noting XPeng's rapid progress as a benchmark for the industry’s transition to electrification and smart vehicle technologies.