Xpeng (XPEV) Stock: Q3 Earnings Beat Expectations But Weak Guidance Sends Shares Lower

TLDR

• Xpeng reported a Q3 loss of RMB0.16 per share, beating expectations of a RMB0.57 loss, with revenue rising 101.8% to RMB20.38 billion
• The company delivered 116,007 vehicles in Q3, marking a 149.3% increase year-over-year
• Gross margin improved to 20.1% from 15.3% a year earlier, while vehicle margin reached 13.1%
• Q4 revenue guidance of RMB21.5-23.0 billion missed analyst expectations of RMB25.09 billion
• Xpeng ended September with RMB48.33 billion in cash and equivalents

Xpeng reported third-quarter results that showed better-than-expected losses but gave investors pause with conservative guidance for the current quarter. The stock dropped roughly 2% in premarket trading Monday.

XPeng Inc., XPEV

The Chinese electric vehicle maker posted a loss of RMB0.16 per share. Analysts had predicted a much larger loss of RMB0.57 per share. Revenue climbed 101.8% year-over-year to RMB20.38 billion, just missing the RMB20.63 billion consensus.

Vehicle sales drove most of the revenue. The company brought in RMB18.05 billion from vehicle sales alone. This represented a 105.3% jump from the same period last year and a 6.9% increase from the previous quarter.

Delivery numbers told a strong growth story. Xpeng delivered 116,007 vehicles during the three-month period. That marked a 149.3% increase compared to Q3 2024.

Margin Improvements Show Progress

The company’s profitability metrics moved in the right direction. Gross margin reached 20.1% in the quarter, up from 15.3% a year earlier. The second quarter had shown a gross margin of 17.3%.

Vehicle margin specifically came in at 13.1%. This beat the 8.6% from Q3 2024 but fell slightly from the 14.3% achieved in Q2 2025. The modest quarter-over-quarter decline in vehicle margin came even as overall gross margin expanded.

Xpeng’s balance sheet remained solid. The company held RMB48.33 billion in cash, equivalents, restricted cash, short-term investments and time deposits at the end of September. This was essentially flat from the RMB47.57 billion reported at the end of June.

Q4 Guidance Disappoints Investors

The fourth-quarter outlook fell short of Wall Street expectations. Xpeng projects deliveries between 125,000 and 132,000 vehicles. This would represent annual growth of roughly 36.6% to 44.3%.

Revenue guidance came in below consensus. The company expects total revenue between RMB21.5 billion and RMB23.0 billion. Analysts had been looking for RMB25.09 billion.

The gap between the guidance and expectations likely contributed to the stock’s premarket decline. Investors appeared concerned about the revenue projection despite the sequential growth in delivery volumes.

Research and development expenses rose to RMB2.43 billion in Q3. This represented a 48.7% increase year-over-year. The company continues to invest heavily in new technology and vehicle development.

The net loss for the quarter totaled RMB0.38 billion. On a non-GAAP basis, the net loss was RMB0.15 billion. Both figures showed improvement from previous periods.

Xpeng guided Q4 deliveries to 125,000-132,000 vehicles with revenue of RMB21.5-23.0 billion, below the RMB25.09 billion analyst consensus.

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