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 and strategic cooperation with Volkswagen.

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

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

• Organizational upgrades and new talent in marketing, design, and AI have enhanced competitiveness.

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

Financial highlights

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

• 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.

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

• Net loss narrowed to RMB 1.28 billion from RMB 2.8 billion a year ago and RMB 1.37 billion in Q1 2024.

Outlook and guidance

• Q3 2024 delivery volume expected at 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.

• Anticipates substantial quarter-over-quarter delivery growth in Q3 and Q4, with a new delivery record in Q4.

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

• Overseas business expected to maintain strong growth, with plans to double international sales stores in H2 2024.