XPENG scores YoY growth in Q1 2025 revenue, gross margin

Shanghai (Gasgoo)- On May 21, XPeng Inc. ("XPENG" or "the company"), a prominent Chinese smart electric vehicle (EV) manufacturer, released its unaudited financial results for the first quarter (Q1) of 2025.

The company posted total revenue of RMB15.81 billion (US$2.18 billion), marking a 141.5% surge from RMB6.55 billion in the same period last year. However, this represented a slight decline of 1.8% from the previous quarter.

Revenue from vehicle sales reached RMB14.37 billion (US$1.98 billion) in Q1 2025, soaring 159.2% year-on-year, though down 2.1% compared to the fourth quarter (Q4) of 2024. The sharp year-over-year rise was driven by increased vehicle deliveries.

XEPNG's total deliveries of vehicles were 94,008 for Q1 2025, representing a spike of 330.8% from the corresponding period of 2024.

In the same quarter, XPENG's gross margin improved to 15.6%, compared to 12.9% in Q1 2024 and 14.4% in the previous quarter. Vehicle margin also rose significantly to 10.5%, up from 5.5% a year earlier and 10% in the preceding quarter. These gains were largely attributed to ongoing cost reductions and economies of scale achieved through higher sales volumes, partially offset by inventory provisions and purchase commitment losses related to vehicle upgrades.

R&D expenses totaled RMB1.98 billion (US$0.27 billion) in Q1 2025, a 46.7% leap from a year ago, primarily due to investments in new vehicle model development and technological innovation. However, the R&D spending saw a slight quarter-over-quarter dip of 1.3%.

The company narrowed its net loss to RMB0.66 billion (US$0.09 billion) in Q1 2025, compared with RMB1.37 billion in Q1 2024 and RMB1.33 billion in Q4 2024. On a non-GAAP basis, which excludes share-based compensation and derivative-related fair value changes, net loss came in at RMB0.43 billion (US$0.06 billion), significantly lower than RMB1.41 billion and RMB1.39 billion in Q1 2024 and Q4 2024, respectively.

As of March 31, 2025, XPENG held RMB45.28 billion (US$6.24 billion) in cash, restricted cash, short-term investments, and time deposits—up from RMB41.4 billion a year earlier and RMB41.96 billion at the end of 2024.

Looking ahead, the company projects vehicle deliveries of between 102,000 units and 108,000 units in the second quarter of 2025, representing a year-on-year hike of approximately 237.7% to 257.5%. It expects total revenue for the quarter to range from RMB17.5 billion to RMB18.7 billion, up roughly 115.7% to 130.5% from a year ago.