• Vehicle Deliveries: 91,507 vehicles delivered in Q4 2024.
• Free Cash Flow: Over RMB4 billion in the second half of 2024.
• Revenue: RMB16.11 billion in Q4 2024, up 23.4% year-over-year and 59.4% quarter-over-quarter.
• Vehicle Sales Revenue: RMB14.67 billion in Q4 2024, up 20% year-over-year and 66.8% quarter-over-quarter.
• Services and Others Revenue: RMB1.43 billion in Q4 2024, up 74.4% year-over-year and 9.7% quarter-over-quarter.
• Gross Margin: 14.4% in Q4 2024, compared to 6.2% in Q4 2023 and 15.3% in Q3 2024.
• Vehicle Margin: 10% in Q4 2024, compared to 4.1% in Q4 2023 and 8.6% in Q3 2024.
• R&D Expenses: RMB2.01 billion in Q4 2024, up 53.4% year-over-year and 22.9% quarter-over-quarter.
• SG&A Expenses: RMB2.28 billion in Q4 2024, up 17.5% year-over-year and 39.3% quarter-over-quarter.
• Net Loss: RMB1.33 billion in Q4 2024, compared to RMB1.35 billion year-over-year and RMB1.81 billion quarter-over-quarter.
• Cash and Cash Equivalents: RMB42 billion as of December 31, 2024.
• 2025 Q1 Delivery Forecast: 91,000 to 93,000 units, a year-over-year increase of 317% to 326.2%.
• 2025 Q1 Revenue Forecast: RMB15 billion to RMB15.7 billion, a year-over-year growth of 129% to 139%.

• Warning! GuruFocus has detected 5 Warning Signs with XPEV.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• XPeng Inc (NYSE:XPEV) achieved a record 91,507 vehicle deliveries in the fourth quarter of 2024, marking significant growth.
• The company reported over RMB4 billion in free cash flow in the second half of 2024, indicating strong financial health.
• XPeng Inc (NYSE:XPEV) has seen six consecutive quarters of improving vehicle margins, showcasing effective cost management.
• The company plans to launch new models or updated versions every quarter starting in 2025, all equipped with next-gen AI technologies.
• XPeng Inc (NYSE:XPEV) is expanding its global presence, with plans to double its sales and establish over 300 sales and service stores worldwide by the end of 2025.

Negative Points

• XPeng Inc (NYSE:XPEV) reported a net loss of RMB1.33 billion for the fourth quarter of 2024, indicating ongoing financial challenges.
• R&D expenses increased by 53.4% year over year, reflecting higher costs associated with new vehicle model development.
• SG&A expenses rose by 17.5% year-over-year, driven by higher commissions paid to franchise stores due to increased sales volume.
• The company's gross margin decreased slightly from 15.3% in the third quarter to 14.4% in the fourth quarter of 2024.
• XPeng Inc (NYSE:XPEV) faces significant competition in the autonomous driving space, with many OEMs entering the market and potentially narrowing the technology gap.

Q & A Highlights

Q: With XPeng's AI democratization in China and the upcoming upgrade to Level 3 autonomous driving, can this help widen the gap between leaders and laggards in the autonomous driving race? A: Xiaopeng He, Chairman and CEO, explained that the adoption of smart driving is accelerating, with AI capabilities becoming standard in their vehicles. He emphasized that XPeng's full-stack self-development and early investment in AI technology will create a significant gap between XPeng and its competitors. The integration of AI in vehicles is expected to transform them into AI agents, enhancing user experience and loyalty.

Q: How will XPeng's investments in AI applications, such as autonomous vehicles and humanoid robots, create synergies, and when will these projects contribute to value? A: Xiaopeng He highlighted that XPeng's long-term vision includes integrating AI with energy to create new mobility solutions, including vehicles, flying cars, and humanoid robots. By 2026, XPeng expects to see significant synergies from these investments, with plans to mass-produce flying cars. The AI models developed for autonomous vehicles are compatible with humanoid robots, allowing for shared capabilities across different domains.

Q: How will XPeng's self-developed touring chip enhance its AI autonomous driving capabilities beyond cost control? A: Xiaopeng He stated that the self-developed touring chip allows XPeng to customize products and improve performance significantly. It enables efficient data iteration and enhances XPeng's competitive leadership by integrating software and hardware capabilities, ensuring a first-mover advantage in AI-driven autonomous driving.

Q: What are XPeng's plans for international expansion, and are there considerations for building factories overseas? A: Brian Hongdi Gu, Vice Chairman and Co-President, confirmed that international expansion is a key growth pillar. XPeng plans to double its international sales outlets and expand into more countries. The company is exploring local production solutions, including potential manufacturing in Indonesia, and will establish overseas R&D centers to support global technology development.

Q: What is XPeng's strategy for achieving Level 3 autonomous driving, and how does it plan to address safety and regulatory concerns? A: Xiaopeng He explained that achieving Level 3 autonomous driving involves comprehensive data collection and model development. XPeng is working on regulatory proposals to ensure a safer driving environment and believes China will lead in establishing regulations for autonomous driving. The company aims to achieve significant milestones in reducing human intervention rates, ultimately promoting high-level intelligent driving penetration.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.