TLDR
- XPeng reported a 4-cent per-share loss, beating Wall Street’s expected 11-cent loss
- Vehicle deliveries jumped 242% year-over-year to 103,181 cars in Q2
- Revenue came in at $2.6 billion, slightly above analyst estimates of $2.5 billion
- Stock rose 3.4% in premarket trading to $20.58 per share
- Company expects to deliver 113,000-118,000 vehicles in Q3 2025
XPeng stock climbed in premarket trading after the Chinese electric vehicle maker delivered earnings that topped Wall Street expectations. The company posted a second-quarter loss of 4 cents per share on revenue of just under $2.6 billion.
Analysts had forecast an 11-cent loss on sales of $2.5 billion. The earnings beat sent XPeng’s U.S.-listed shares up 3.4% to $20.58 in early trading.
The stock has already gained about 68% this year before Tuesday’s results. Strong vehicle sales growth has been the main driver behind the rally.
XPeng delivered 103,181 vehicles in the second quarter. This represented a massive 242% increase compared to the same period last year.
CEO Xiaopeng He highlighted the company’s technology improvements. “By 2025, we completed upgrades to the next generation technology platforms for smart and electrification technologies,” he said.
The earnings report showed XPeng’s ability to grow despite pricing pressures. Revenue hit $2.6 billion, beating the $2.5 billion estimate but falling short of some projections around $2.9 billion when converted from yuan.
Vehicle Deliveries Drive Growth
Looking ahead, XPeng expects to deliver between 113,000 and 118,000 vehicles in the third quarter. This compares to about 47,000 vehicles delivered in Q3 2024.
To meet this guidance, the company needs to deliver roughly 79,000 vehicles in August and September. That works out to about 39,500 vehicles per month.
Vehicle sales should grow approximately 150% year-over-year in the coming quarter. However, revenue growth is expected to be more modest at around 100%.
XPeng projects third-quarter revenue between $2.7 billion and $2.9 billion. Wall Street currently expects closer to $2.9 billion for the period.
The company delivered 36,717 vehicles in July. This puts them on track to meet their quarterly delivery targets.
Margins Improve Despite Price Competition
Chinese EV companies have faced intense pricing pressure throughout 2025. XPeng co-President Brian Gu acknowledged this challenge while defending the company’s strategy.
“In the face of intense industrywide price competition, we remain committed to a long-term, sustainable growth strategy,” Gu said. He emphasized the company’s focus on “rapidly improving operational quality.”
Despite the pricing headwinds, XPeng managed to boost its profit margins. The gross profit margin reached 17.3% in the quarter.
This marked a record high for the company. The margin also improved by three percentage points compared to the same quarter last year.
The margin expansion shows XPeng’s ability to control costs even as it scales production. The company has worked to improve manufacturing efficiency and reduce component costs.
XPeng’s second-quarter performance demonstrates the company’s resilience in a competitive market. The vehicle delivery surge of 242% year-over-year shows strong consumer demand for the company’s electric vehicles.
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