---
title: "XPeng's Q2 revenue doubled to a record high, net loss narrowed by 63%, Q3 guidance below expectations | Earnings Report Insights"
type: "News"
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description: "More news, ongoing updates"
datetime: "2025-08-19T09:00:51.000Z"
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# XPeng's Q2 revenue doubled to a record high, net loss narrowed by 63%, Q3 guidance below expectations | Earnings Report Insights

XPeng reported a adjusted loss per share of RMB 0.20 for the second quarter. XPeng expects third-quarter revenue to be between RMB 19.6 billion and RMB 21 billion.

## Key Points

-   Financial Performance: Q2 total revenue was RMB 18.27 billion, a year-on-year increase of 125.3%, with market estimates at RMB 18.38 billion; net loss was RMB 480 million, narrowing from RMB 1.28 billion in the same period last year by 63%; adjusted loss per share was RMB 0.20, compared to a loss of RMB 0.65 per share in the same period last year;
-   Sales Breakthrough: The number of vehicle deliveries in the quarter reached 103,181 units, a year-on-year surge of 241.6%, setting a new historical high;
-   Profitability Improvement: Gross margin was 17.3%, compared to 14% in the same period last year, with an estimate of 15.5%; among them, the automotive gross margin was 14.3%, an increase of 7.9 percentage points year-on-year, improving for eight consecutive quarters;
-   Ample Cash: Cash and cash equivalents on the books were RMB 47.57 billion, providing ample ammunition for business expansion;
-   Business Expansion: The sales network expanded to 677 stores, with self-operated charging stations reaching 2,348;
-   Performance Guidance: Expected Q3 deliveries of 113,000-118,000 units, below the market expectation of 119,051 units, with revenue between RMB 19.6 billion and RMB 21 billion, while the market estimate is RMB 21.06 billion.

After the earnings report was released, XPeng's U.S. stock pre-market plummeted, with a decline of nearly 3%.

## Scale Effect Begins to Show, But at What Cost?

The most noteworthy aspect is the significant improvement in automotive gross margin. It jumped from 6.4% in the same period last year to 14.3%, with a quarter-on-quarter increase of 3.8 percentage points, indicating that XPeng is moving out of the previous "scale for price" quagmire. The continuous improvement in gross margin over eight consecutive quarters suggests that this is not a fleeting phenomenon, but rather a structural enhancement in operational quality.

However, this improvement comes at the cost of significantly increased investment. R&D expenses reached RMB 2.21 billion, a year-on-year increase of 50.4%, and sales and management expenses also rose to RMB 2.17 billion. Although the net loss narrowed from RMB 1.28 billion in the same period last year to RMB 480 million, XPeng is still in a cash-burning phase, albeit with improved "efficiency" in spending.

## The Double-Edged Sword of Technology Platform Upgrades

Management emphasized that "the upgrade of the new generation technology platform for intelligence and electrification has been completed, creating a comprehensive technological gap with competitors." This statement sounds quite confident, but whether technological leadership can translate into market advantages remains to be seen.

The strategic cooperation with the Volkswagen Group is a positive signal, indicating that XPeng's technological strength has been recognized by international giants. However, the specific benefits and timeline of the cooperation still need further disclosure. At the same time, the market performance of the newly launched G7 model will be an important indicator to test the results of the technology upgrade.

## Cash Flow Situation: Appears Ample, But Actually Under Pressure

The cash reserve of RMB 47.57 billion seems ample, but considering XPeng's current cash-burning rate and expansion plans, this figure does not fully reassure investors. Although specific data on Q2 operating cash flow has not been disclosed in detail, the significant increase in R&D and sales expenses indicates that the pressure of cash consumption still exists

## Forward Guidance: Concerns Amid Optimism

XPeng's guidance for Q3 indicates that deliveries will reach 113,000-118,000 units, a year-on-year increase of 142.8%-153.6%. This guidance is quite aggressive, but it also exposes a problem: can the high growth target be achieved without sacrificing profitability?

From the revenue guidance perspective, the total revenue expectation for Q3 is 19.6-21 billion yuan, which suggests that the average selling price per vehicle may face pressure. In the current intense price competition environment, balancing scale growth and profit improvement will be the core challenge facing XPeng.

Updating

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