Shanghai (Gasgoo)- XPENG reported its strongest quarterly performance to date on November 17, with third-quarter (Q3) results marking new highs across multiple financial and operational indicators. Deliveries reached 116,007 vehicles, soaring 149.3% from the previous year and 12.4% from the previous quarter, extending a three-quarter streak of rapid expansion. Revenue grew to 20.38 billion yuan, up 101.8% year-on-year and 11.5% higher than the second quarter, beating market expectations.
Profitability also strengthened meaningfully. XPENG's gross margin rose to 20.1%, its first time above the 20% threshold and 4.8 percentage points higher than a year ago. Automotive gross margin improved to 13.1%, while net losses narrowed sharply to 380 million yuan—down 78.9% year-on-year—as tighter cost controls and improved operating efficiency took hold. By the end of September, the company's cash, equivalents and short-term investments had increased to a record 48.33 billion yuan. XPENG continued expanding its charging footprint as well, operating 2,676 self-built charging stations nationwide, more than 60% of which support ultra-fast charging.
Chairman and CEO He Xiaopeng said the company is in a phase of rapid volume and share expansion, and will deepen investment in "physical AI" technologies as well as global market development. Vice Chairman Brian Gu added that margin gains were driven by growing technology-related revenue and disciplined cost management, giving the company more room to reinvest in innovation.
On the product front, the all-new XPENG P7 ramped up quickly after launch, with September deliveries surpassing 40,000 units and contributing to a more balanced product mix. Overseas momentum accelerated as the brand entered new European markets, including Switzerland and Austria, during the quarter. XPENG delivered 29,706 vehicles outside China in the first nine months of the year, up 125% from a year earlier.
Looking ahead, XPENG expects fourth-quarter deliveries to reach between 125,000 and 132,000 units, with projected revenue of 21.5 billion yuan to 23 billion yuan—representing annual growth of 33.5% to 42.8%.
