XPeng reported its smallest quarterly loss in more than five years as the Chinese carmaker doubled revenue and improved margins while ramping deliveries.
The Guangzhou-based company posted a net loss of 380 million yuan ($53 million) in the third quarter, down 79% from a loss of 1.81 billion yuan a year earlier and narrowing 21% from the 480 million yuan loss in the second quarter.
The result marks XPeng‘s eighth consecutive quarter of year-over-year net loss reduction.
Total revenue reached 20.38 billion yuan ($2.86 billion), up 102% from the same period in 2024 and 11.5% higher than the second quarter.
Vehicle sales revenue climbed 105% year-over-year to 18.05 billion yuan, driven by deliveries of 116,007 vehicles — a 149% increase from 46,533 units a year earlier.
The third-quarter loss represents XPeng‘s smallest since the third quarter of 2020, as the company aims to reach profitability in the final quarter of 2025.
Margin Improvement
Gross margin expanded to 20.1% in the third quarter from 15.3% a year earlier and 17.3% in the second quarter.
Vehicle margin reached 13.1%, compared with 8.6% in the year-earlier period, though down slightly from 14.3% in the second quarter.
The company will host an earnings conference call scheduled for 8:00 AM Eastern Time where the founder and CEO He Xiaopeng is expected to provide an update on XPeng’s profitability target.
Fourth-Quarter Guidance
XPeng projected fourth-quarter vehicle deliveries between 125,000 and 132,000 units, representing year-over-year growth of approximately 36.6% to 44.3%.
The guidance implies sequential growth of 7.7% to 13.8% from the third quarter’s 116,007 deliveries.
The company forecast fourth-quarter revenue between 21.5 billion yuan and 23 billion yuan, up 33.5% to 42.8% from the same period last year. At the midpoint, the guidance suggests sequential revenue growth of approximately 10.4%.
XPeng has delivered 355,209 vehicles in the first ten months of the year, reaching over 90% of the yearly target of 380,000 units.
Additionally, it has nearly reached its goal to double its presence in overseas markets from 30 to 60 — Cambodia, to which the brand expanded in late October, became its 54th global market.
