XPeng (XPEV) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 deliveries of 91,507 vehicles, a 52.1% year-over-year increase, and six consecutive quarters of improving vehicle margins, with over CNY 4 billion in free cash flow in H2 2024.

• Q4 2024 revenues reached CNY 16.11 billion, up 59.4% quarter-over-quarter and 23.4% year-over-year; full-year 2024 revenues were CNY 40.87 billion, up 33.2%.

• Gross margin improved to 14.4% in Q4 2024 (up 8.2 pts YoY), and vehicle margin reached 10.0% in Q4.

• Net loss narrowed to CNY 1.33 billion in Q4 2024 from CNY 1.81 billion in Q3 and CNY 1.35 billion in Q4 2023; full-year net loss was CNY 5.79 billion, down from CNY 10.38 billion in 2023.

• Strategic focus on AI-driven product development, commercialization, and global expansion, aiming to become an AI-empowered global automotive and technology brand.

Financial highlights

• Q4 2024 total revenue reached CNY 16.11 billion, up 23.4% year-over-year and 59.4% quarter-over-quarter.

• Vehicle sales revenue was CNY 14.67 billion, up 20% year-over-year and 66.8% quarter-over-quarter.

• Q4 2024 gross profit was CNY 2.32 billion, up 187.2% year-over-year.

• R&D expenses increased 53.4% year-over-year to CNY 2.01 billion, reflecting investment in new vehicle models.

• Services and others revenue in Q4 2024 was CNY 1.43 billion, up 74.4% year-over-year, driven by technical R&D and EEA collaboration with Volkswagen.

Outlook and guidance

• Q1 2025 deliveries expected between 91,000 and 93,000 units, up 317%-326.2% year-over-year.

• Q1 2025 revenue forecasted at CNY 15-15.7 billion, representing 129%-139% year-over-year growth.

• Plans to launch new or updated models every quarter in 2025, all equipped with next-gen AI technologies.

• 2025 total sales projected to more than double 2024 levels, with ongoing improvements in vehicle margins and a target of profitability in Q4 2025.

• Management confident in maintaining R&D investment and enhancing profitability and free cash flow in 2025.