AsianFin -- The American depositary receipts (ADRs) of XPeng Inc. rose around 4.2% on Tuesday after the Chinese electric vehicle (EV) manufacturer posted record high quarterly sales and automotive margin.
Credit：XPeng
XPeng reported more than doubled top line and less-than-expected losses for the quarter ended June 30. Total revenue surged 125.3% year-over-year (YoY) to RMB18.27 billion (), just shy of analysts expectation of RMB18.56 billion. Diluted net loss per share was RMB0.25 ($0.04) while Wall Street was looking for a $0.11 loss. On non GAAP basis, operating loss narrowed nearly 45.5% YoY to $840 million, better than analysts projected RMB910 billion.
XPeng’s EV business was solid on the top line and margin became one of highlights for the June quarter. Vehicle revenue climbed 129% YoY to RMB16.88 billion versus estimated RMB16.98 billion. Vehicle gross margin more than doubled YoY to a new record of 14.3%, representing a 3.8 percentage points increase from the first quarter. That easily crashed the estimated margin of 11.4%. The margin beat resulted from change of portfolio.
The second quarter saw the proportion of the mid and high-priced models, such as modified G6/G9/X9, advanced 17 percentage points from three months ago, while that of the low-priced Mona Mo03 dropped 12 points sequentially.
“In the second quarter of 2025, XPENG achieved record-high performance across key operational and financial metrics, including vehicle deliveries, revenue, gross margin, and cash position.” said XPeng Chairman and CEO Xiaopeng He.“By 2025, we have completed upgrades to the next generation technology platforms for smart and electrification technologies, further strengthening our technology leadership over our peers.”
XPeng delivered 103,181 cars in the second quarter, up 242% YoY. But its guidance for the third quartermissed anticipation. The EV maker expected to deliver 113,000 to 118,000 EVs, representing a YoY increase range of 140.4% and 151.1%. Analysts projected the delivery volume to be 119,051 units. XPeng also saw revenue to rise 94% to 107.9% YoY to RMB19.6 billion to RMB21.0 billion, whereas analysts expected to be RMB21.06 billion.
The guidance suggested XPeng would deliver a monthly average of 38,000 units to 40,000 units from August to September. The guidance miss may raise investors’ concern over sales of XPeng’s new P7 all-electric sedan. The company had officially started pre-sale of new P7 in China on August 6, with more than 10,000 orders it received in just more than 6 minutes.
The revenue guidance miss came as weaker pricing has affected the Chinese EV industry. XPeng Vice Chairman and Co-President Hongdi Brain Gu said the company felt confident that it will not onnly accelerate scale growth but also ontinue to improve its profitability. “In the face of intense industrywide price competition, we remain committed to a long-term, sustainable growth strategy, with rapidly improving operational quality,” said Gu.
