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 Inc. reduced its Q2 net loss by over 60% to 480 million yuan, as deliveries grew 241.6% to 103,181 cars and revenue rose 125.3% to almost 18.3 billion yuan.
Gross margin on vehicle sales increased to 14.3%, and revenue from technologies and services, including cooperation with Volkswagen, reached nearly 1.4 billion yuan.
XPeng forecasts Q3 deliveries of up to 118,000 vehicles and revenue of 19.6–21 billion yuan, with plans to expand its product lineup.

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Who’s Who

XPeng Inc.: XPeng Inc., a Chinese EV manufacturer, significantly narrowed Q2 losses by over 60% as deliveries more than tripled. Revenue skyrocketed by 125.3%, and the company delivered a record 103,181 cars. XPeng also generated revenue from selling technology and services, including a collaboration with Volkswagen AG. The company expects strong Q3 deliveries and is expanding its product line to diversify its offerings.

Volkswagen AG: Volkswagen AG, a German automotive giant, has partnered with Chinese EV-maker XPeng. This collaboration involves XPeng's advanced digital systems being integrated into Volkswagen's gasoline, hybrid, and all-electric vehicles sold in China. This partnership highlights the trend of global carmakers relying on Chinese EV companies to remain competitive in the rapidly 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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