- Xpeng posted a net loss of RMB 380 million ($50 million) in the third quarter, its smallest since the third quarter of 2020.
- Xpeng’s non-GAAP net loss narrowed to RMB 150 million in the third quarter, approaching breakeven.
(A Xpeng P7+ displayed at the Shanghai auto show in April 2025. Image credit: CnEVPost)
Xpeng (NYSE: XPEV) reported its smallest net loss in five years as vehicle deliveries and service revenue surged.
The electric vehicle (EV) maker posted a net loss of RMB 380 million ($50 million) in the third quarter, the lowest since the third quarter of 2020, according to unaudited financial results released today.
This represents a 78.93 percent decrease from the RMB 1.81 billion net loss in the same period of 2024 and a 20.28 percent decrease from the RMB 480 million net loss in the second quarter 2025.
This marks Xpeng’s eighth consecutive quarter of year-on-year net loss reduction. The company aims to achieve quarterly profitability in the fourth quarter of this year.
Xpeng’s non-GAAP net loss for the third quarter was RMB 150 million, approaching breakeven. This compares to RMB 1.53 billion in the same period of 2024 and RMB 390 million in the second quarter of 2025.
The company has seen robust growth this year, delivering 116,007 vehicles in the third quarter — a record high for the fourth consecutive quarter, according to data compiled by CnEVPost. This represents a 149.30 percent year-on-year increase and a 12.43 percent rise from the second quarter.
Xpeng’s third-quarter revenue reached RMB 20.38 billion, a 101.8 percent increase from RMB 10.1 billion in the same period of 2024 and an 11.5 percent rise from RMB 18.27 billion in the second quarter of 2025.
Vehicle sales revenue reached RMB 18.05 billion in the third quarter, up 105.3 percent year-on-year and up 6.9 percent quarter-on-quarter. This growth was primarily driven by increased deliveries of newly launched models, Xpeng said.
The company’s service and other revenue reached RMB 2.33 billion in the third quarter, up 78.1 percent from RMB 1.31 billion in the same period of 2024 and up 67.3 percent from RMB 1.39 billion in the second quarter 2025.
The growth was primarily driven by increased revenue from after-sales services and technical R&D services provided to “a car manufacturer” following the successful completion of several key milestones this quarter under their agreement.
Xpeng did not name the manufacturer, though it is apparently German automaker Volkswagen.
On July 26, 2023, Xpeng announced Volkswagen’s plan to invest $700 million in the company and jointly develop EVs.
Earlier this month, Volkswagen’s majority-owned Chinese joint venture, Volkswagen Anhui, filed for the ID.UNYX 08 SUV (sport utility vehicle), signaling the imminent launch of their first collaborative model.
Xpeng’s gross margin reached a record 20.1 percent in the third quarter, compared to 15.3 percent in the same period of 2024 and 17.3 percent in the second quarter 2025.
Its vehicle margin came in at 13.1 percent in the third quarter, compared to 8.6 percent in the same period of 2024 and 14.3 percent projected for the second quarter 2025. The year-on-year increase primarily resulted from ongoing cost reductions, while the quarter-on-quarter decline stemmed from product transitions.
Xpeng’s service and other business margin reached 74.6 percent in the third quarter, compared to 60.1 percent in the same period of 2024 and 53.6 percent in the second quarter 2025. This growth was primarily driven by revenue from technology R&D services.
The company’s R&D expenses for the third quarter were RMB 2.43 billion, representing a 48.7 percent increase from RMB 1.63 billion in the same period of 2024 and a 10.1 percent increase from RMB 2.21 billion in the second quarter of 2025.
The increase were primarily attributable to the company’s expansion of its product portfolio to support future growth, resulting in higher expenses related to the development of new vehicle models and technologies.
Its third-quarter selling, general, and administrative (SG&A) expenses totaled RMB 2.49 billion, representing a 52.6 percent increase from RMB 1.63 billion in the same period of 2024 and a 15.0 percent increase from RMB 2.17 billion in the second quarter of 2025.
The increases were primarily driven by higher franchisee commissions, which in turn resulted from sales growth and increased marketing and advertising expenses.
As of September 30, 2025, Xpeng held a total of RMB 48.33 billion in cash and cash equivalents, restricted cash, short-term investments, and time deposits.
Xpeng guided fourth-quarter vehicle deliveries to be between 125,000 and 132,000 units, representing year-on-year growth of about 36.6 percent to 44.3 percent.
It guided fourth-quarter total revenue to be between RMB 21.5 billion and RMB 23.0 billion, representing year-on-year growth of about 33.5 percent to 42.8 percent.
The guidance implies Xpeng now expects combined November and December deliveries to reach 82,987 to 89,987 units, considering its October delivery of 42,013 vehicles.
Correction: In a previous version, the net loss of RMB 380 million was incorrectly converted to $500 million.
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