XPeng (XPEV) Q1 2025 earnings summary

Executive summary

• Q1 2025 deliveries reached 94,008 units, up 331% year-over-year, setting a new record and leading sales among emerging EV brands domestically and globally.

• Total revenues reached RMB 15.81 billion, a 141.5% increase year-over-year, with vehicle sales revenue up 159.2%.

• Gross margin improved for seven consecutive quarters, reaching a record 15.6% in Q1 2025; net loss narrowed significantly quarter-over-quarter to RMB 0.66 billion, a 51.5% improvement year-over-year.

• Free cash flow exceeded RMB 3 billion in Q1 2025.

• Management highlighted cost reduction, strong product cycle, and global expansion as key growth drivers.

Financial highlights

• Vehicle margin rose to 10.5%, up 5.0 percentage points year-over-year and 0.5 points sequentially.

• Services and others revenue was RMB 1.44 billion, up 43.6% year-over-year, with margin reaching 66.4%.

• R&D expenses increased 46.7% year-over-year to RMB 1.98 billion, reflecting investment in new models and technologies.

• Cash and equivalents, restricted cash, short-term investments, and time deposits totaled RMB 45.28 billion as of March 31, 2025.

• Other income surged due to government subsidies, up 634.8% year-over-year.

Outlook and guidance

• Q2 2025 deliveries expected at 102,000–108,000 units, up 237.7%–257.5% year-over-year.

• Q2 2025 revenue expected at RMB 17.5–18.7 billion, up 115.7%–130.5% year-over-year.

• Profitability targeted in Q4 2025, with full-year free cash flow generation.

• Five model upgrades or enhancements in Q2; two new major models to begin deliveries in Q3.