XPeng (XPEV) Q2 2024 earnings summary

Executive summary

• Delivered 30,207 smart EVs in Q2 2024, up 38% quarter-over-quarter and 30% year-over-year, driven by technology-driven cost reductions, operational efficiency, and Volkswagen partnership revenues.

• Q2 2024 revenues reached RMB 8.11 billion, up 60.2% year-over-year and 23.9% quarter-over-quarter.

• Gross margin improved to 14%, positioning the company among leading Chinese EV makers.

• Net loss narrowed to RMB 1.28 billion, a 54.2% reduction from Q2 2023.

• Strategic partnership with Volkswagen advanced, including a new technical collaboration agreement.

Financial highlights

• Vehicle sales revenue was RMB 6.82 billion, up 54.1% year-over-year and 23% quarter-over-quarter.

• Services and other revenues were RMB 1.29 billion, up 102.5% year-over-year and 28.8% quarter-over-quarter.

• Gross margin rose to 14% from -3.9% a year ago and 12.9% in Q1 2024.

• Vehicle margin improved to 6.4% from -8.6% a year ago and 5.5% in Q1 2024.

• R&D expenses were RMB 1.47 billion, up 7.3% year-over-year and 8.6% quarter-over-quarter.

Outlook and guidance

• Q3 2024 delivery volume expected between 41,000-45,000 units, up 35.7%-49% quarter-over-quarter and 2.5%-12.5% year-over-year.

• Q3 2024 revenue projected at RMB 9.1-9.8 billion, up 12.2%-20.8% quarter-over-quarter and 6.7%-14.9% year-over-year.

• Management anticipates improved operating efficiency and cash flow as new product cycles drive sales.

• Overseas deliveries expected to exceed 15% of total in Q3.

• Margin expected to remain stable in the mid to low teens for the second half of 2024.