Chinese electric vehicle maker Xpeng on Tuesday reported record second-quarter revenue and its narrowest quarterly net loss in five years, as robust deliveries and cost efficiencies helped strengthen margins.
The company’s net loss for the three months ended June 30 was 480 million yuan ($70 million), the lowest since the third quarter of 2020, compared with a 1.28 billion yuan loss a year earlier. On a non-GAAP basis, net loss came in at 390 million yuan.
Revenue rose 125.3% year-on-year to 18.27 billion yuan ($2.55 billion), driven by higher deliveries of its latest models. Vehicle sales accounted for 16.88 billion yuan, up 148% from a year earlier and 17.5% from the previous quarter. Services and other revenue grew 7.6% year-on-year to 1.39 billion yuan.
Gross margin improved to 17.3% from 14% a year earlier, while vehicle margin nearly doubled to 14.3% from 6.4%, supported by cost reductions and an improved product mix.
Operating loss narrowed to 930 million yuan from 1.61 billion yuan a year earlier. Research and development expenses rose 50% to 2.21 billion yuan, reflecting investment in new models and technology, while selling and administrative costs climbed nearly 38% to 2.17 billion yuan on higher sales commissions and marketing spend.
Cash, cash equivalents and short-term investments stood at 47.57 billion yuan ($6.64 billion) as of June 30, up from 41.96 billion yuan at the end of 2024.
Looking ahead, Xpeng expects third-quarter deliveries of between 113,000 and 118,000 vehicles, representing growth of as much as 154% from a year earlier. The company forecast revenue between 19.6 billion yuan and 21 billion yuan, nearly doubling from the same period in 2024.