XPeng Motors will release its latest quarterly earnings on November 17, 2025, before the U.S. market opens. According to forecasts from the Tiger International APP, XPeng Motors' revenue is expected to reach RMB 20.32 billion for the third quarter, an increase of approximately 107.99% year-over-year. This strong growth continues the company's previous momentum, especially in terms of delivery volume and gross margin.

Review of Last Quarter's Performance

In the second quarter, XPeng Motors’ total revenue was RMB 18.27 billion, representing a year-over-year increase of 125.3%, nearing the market expectation of RMB 18.38 billion.

Although the company remains in a loss-making state, net loss was RMB 480 million, down 63% year-on-year. The net loss for the same period last year was RMB 1.28 billion. Adjusted loss per share was RMB 0.20, narrowing further from RMB 0.65 last year.

Gross margin reached 17.3%, exceeding expectations (15.5%) and up from 14% a year earlier, improving for eight consecutive quarters. Specifically, vehicle gross margin was 14.3%, up 7.9 percentage points year-on-year, showing the company's achievements in cost control and product structure optimization.

Vehicle deliveries in the second quarter reached a record high of 103,181 units, up 241.6% year-on-year.

The company's cash and cash equivalents on its balance sheet stood at a record high of RMB 47.57 billion, indicating a strong financial position.

According to the company's guidance, third-quarter deliveries are expected to be between 113,000 and 118,000 units, representing a year-on-year growth of approximately 142.8% to 153.6%; revenues are expected to be between RMB 19.6 billion and RMB 21 billion, up 94% to 107.9% year-on-year. These expectations suggest that XPeng Motors will continue its strong growth trend over the next few quarters.

Highlights for the Quarter

• Growth in Deliveries and Revenue: According to CnEVPost statistics, XPeng Motors' third-quarter deliveries reached 116,007 units, a record high, up 149.3% year-on-year and 12.43% quarter-on-quarter. This growth is primarily attributed to several factors:

  • Successful launch of new models;

  • Promotional strategies for older models;

  • Strong recovery in market demand.

With the delivery of more mid- to high-end models, the optimization of order structure will further boost overall delivery volumes while also aiding in the stability and growth of gross margin.

Factors Influencing Gross Margin

• Short-term Pressure and Long-term Improvement: While XPeng Motors may use price incentives to expand market share, which will exert short-term pressure on gross margin, the company is expected to alleviate this pressure in later quarters as scale effects become evident, especially with cost reductions in the supply chain and higher localization rates for parts.

• Improving Channel Efficiency: The continuous efforts in enhancing channel efficiency and increasing investment in digital marketing will drive the recovery of per-car gross margin. By improving sales channel operational efficiency and enhancing consumer engagement, XPeng Motors can not only increase sales but also maintain high revenue levels during peak delivery periods.

Intelligent and R&D Innovations

Intelligence remains a core competitive advantage for XPeng Motors. The company's continued innovations in driver assistance systems and intelligent cockpits have enhanced product market appeal and increased consumer loyalty. As autonomous driving technology advances and intelligent cockpit functions become more perfected, consumer dependence and brand loyalty are expected to keep growing.

• Penetration Rate of Advanced Intelligent Driving Features: This will drive the growth of software and subscription revenues, which generally have higher gross margins, providing significant profitability potential for the company.

• Enhancements in In-vehicle Operating Systems and Intelligent Connectivity Technology: These innovations can not only improve user experience but also strengthen the company's competitiveness in the high-end market. If these innovations can be further promoted, XPeng Motors is expected to achieve higher market premium ability in the next few years.

Cost Optimization and Supply Chain Coordination

• Cost Control: XPeng Motors has successfully reduced manufacturing costs and improved supply chain efficiency by increasing parts localization and promoting platform development. As scale effects gradually become apparent, the company is expected to further optimize cost structures and enhance gross margins.

• Stable Raw Material Prices: If raw material prices remain stable, the company is expected to benefit from scale effects, further improving gross margin and cash flow.

• Value-added Service Revenue: As the operational efficiency of after-sales service and value-added services improves, "service and other" revenue is expected to grow steadily, providing more stable revenue sources for the company.

Analyst Views

Most analysts hold an optimistic view of XPeng Motors, based on the following points:

• Revenue Growth and Loss Reduction: Analysts believe XPeng Motors is strong in expense control and product structure optimization, expecting continuous gross margin improvement, year-on-year revenue growth, and further narrowing of adjusted per-share loss.

• Progress in Intelligent Driving Technology: With the enhancement of intelligent driving technology and the increasing proportion of mid- to high-end models, the company's unit economics and overall gross margin are expected to further improve.

• Stable Order and Delivery Performance: Analysts are optimistic about XPeng Motors' stable order and delivery performance, believing that gross margin recovery will continue and the path to narrowing EBIT loss is clear.

Conclusion

XPeng Motors is expected to continue its outstanding performance in the third quarter. The company's market position will be further consolidated with the growth in deliveries, gross margin improvements, and ongoing supply chain synergies. Although there may be short-term pressure on gross margins, XPeng Motors is expected to sustain strong growth prospects in the future through product structure optimization, cost control, and intelligent innovation.

This content is generated based on Tiger AI data and is for reference only.