BUSINESS

EV Upstart XPeng Gets a Step Closer to Profitability

Published: Aug. 21, 2025 7:34 p.m. GMT+8

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XPeng Inc. narrowed its losses by more than 60% in the second quarter as the electric-vehicle (EV) upstart more than tripled its deliveries, bringing it closer to its goal of turning its first quarterly profit by the year’s end.

In the three months through June, the Guangzhou-based carmaker booked a net loss of 480 million yuan ($66.8 million), compared with a 1.28 billion yuan deficit in the same period last year, according to the company’s latest earnings report released Tuesday.

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XPeng narrowed Q2 net loss to 480 million yuan, a 60%+ improvement, while revenue rose 125.3% to nearly 18.3 billion yuan, and vehicle deliveries jumped 241.6% to 103,181 units.
Gross margin on vehicle sales increased by 7.9 percentage points to 14.3%; tech and services brought nearly 1.4 billion yuan revenue, including expanded collaboration with Volkswagen.
Q3 guidance: 118,000 vehicle deliveries and 19.6–21 billion yuan revenue; XPeng is launching new models and targeting higher price segments.

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Who’s Who

XPeng Inc.: In the second quarter, XPeng Inc. significantly narrowed its net loss by over 60% to 480 million yuan, while revenue surged by 125.3% to nearly 18.3 billion yuan. The EV manufacturer delivered a record 103,181 cars, a 241.6% increase year-on-year. XPeng also generated nearly 1.4 billion yuan from selling technologies and services, including a collaboration with Volkswagen AG.

Volkswagen AG: Volkswagen AG, a German automotive giant, has a collaboration with XPeng. Initially focused on electric vehicles, this partnership has expanded. Volkswagen will now use XPeng's advanced digital systems in its gasoline and hybrid models sold in China. This collaboration highlights a trend of global carmakers relying on Chinese EV companies to maintain competitiveness in the evolving smart vehicle market.

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What Happened When

July 2025：: XPeng sold about 37,000 cars.

Earlier August 2025：: XPeng began taking preorders for its new P7 model.

Mid-August 2025：: XPeng announced its advanced digital systems would be used in gasoline and hybrid models for Volkswagen in China.

Tuesday, August 19, 2025：: XPeng released its latest earnings report, detailing Q2 2025 results.

In the three months through June 2025：: XPeng Inc. narrowed its net loss to 480 million yuan and more than tripled its vehicle deliveries compared to the same period in 2024.

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