XPeng delivered 116,249 vehicles in Q4, a company record, though below its own guidance of 125,000–132,000 units. The result still shocked Wall Street — analysts had penciled in a net loss of around 200 million yuan.
For the full year 2025, net loss narrowed sharply to 1.14 billion yuan from 5.79 billion yuan in 2024. Full-year revenue soared 88% to 76.72 billion yuan.
The gross margin story is just as striking. Q4 gross margin hit 21.3%, up from 14.4% a year ago. For the full year, gross margin came in at 18.9%, versus 14.3% in 2024. XPeng credited ongoing cost reductions and a stronger product mix.
XPeng Inc., XPEV
The profit beat lands in the middle of a brutal price war in China’s EV market. Domestic competition has been relentless, and XPeng stock is still down 12% over the past year despite Friday’s bounce.
NIO posted its own first-ever quarterly profit last week on record sales. Li Auto, which reached profitability first among the three, reported a slim profit on weaker sales — a reminder that even turning profitable doesn’t guarantee smooth sailing in China’s crowded auto market.
XPeng has been busy beyond just selling cars. The company recently unveiled its VLA 2.0 autonomous-driving system, built on its own chips, with global deliveries planned for 2027.
It also has plans to launch three robotaxi models this year for ride-hailing services in China, with trials expected to start later in 2026.
XPeng has been positioning itself as what it calls a “physical AI company,” pushing into robotaxis and humanoid robots alongside its core EV business. These are long-term bets, but they’re starting to take shape on a real timeline.
Q1 2026 guidance, however, points to a near-term pullback. XPeng expects to deliver between 61,000 and 66,000 vehicles, with revenue coming in at 12.20–13.28 billion yuan. That would be a 16% to 23% decline from the same period last year — a notable step down from the Q4 momentum.
The Q1 delivery forecast reflects typical seasonality in the Chinese auto market after a strong year-end push. XPeng has not offered any commentary suggesting structural concern, framing it as a normal first-quarter pattern.
XPeng ADRs were up 0.8% at $19.30 in premarket trading on Friday following the earnings release.
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