Xpeng reported a rebound in second-quarter revenue as vehicle deliveries recovered from the first quarter, but the Chinese electric vehicle maker’s net loss nearly tripled from a year earlier. According to unaudited financial results, revenue reached 19.74 billion yuan ($2.91 billion), while vehicle deliveries rose 64.8% sequentially to 103,295 units.
Revenue and Vehicle Deliveries Recover
Xpeng’s second-quarter revenue increased 8.0% year-on-year and 51.5% from the previous quarter, coming within the company’s guidance range of 19.60 billion yuan to 20.80 billion yuan.
Vehicle sales revenue reached 17.05 billion yuan, up 1.0% from a year earlier and 55.0% sequentially.
Total vehicle deliveries were 103,295 units, representing a 0.1% year-on-year increase and a 64.8% rise from the first quarter.
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The stronger quarterly delivery performance supported the recovery in overall revenue, although year-on-year vehicle revenue growth remained limited.
Net Loss Widens Despite Higher Gross Margin
Xpeng reported a second-quarter net loss of 1.34 billion yuan, compared with a loss of 480 million yuan a year earlier. The loss nevertheless narrowed 24.7% from 1.78 billion yuan in the first quarter.
On a non-GAAP basis, excluding share-based compensation expenses and a fair-value gain related to contingent consideration, Xpeng reported a net loss of 1.24 billion yuan. The comparable losses were 390 million yuan a year earlier and 1.69 billion yuan in the first quarter.
Gross margin improved to 20.7%, compared with 17.3% a year earlier and 20.6% in the first quarter.
Vehicle margin, however, remained at 12.1%, unchanged from the first quarter and below 14.3% a year earlier. Xpeng attributed the year-on-year decline to the transition between product generations.
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Services Revenue Supports Gross Margin
Xpeng’s services and other businesses provided a significant contribution to the improvement in overall gross margin.
Revenue from the segment increased 93.9% year-on-year to 2.70 billion yuan, while its margin rose to 75.1% from 53.6% a year earlier.
The company said the increase was primarily driven by technical research and development services provided to an automaker, along with higher revenue from parts and accessories.
Xpeng did not identify the automaker in its financial results, although the business relates to Volkswagen.
R&D Spending Increases
Higher operating expenses continued to weigh on Xpeng’s bottom line.
Research and development expenses increased 32.1% year-on-year to 2.91 billion yuan, mainly because of higher spending on new vehicle programmes and artificial intelligence technologies.
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Selling, general and administrative expenses rose 15.2% to 2.50 billion yuan, reflecting increased marketing and advertising expenditure. Lower government subsidies also reduced other income.
As of June 30, Xpeng had 40.48 billion yuan in cash, cash equivalents, restricted cash, short-term investments and time deposits. The total was down 1.61 billion yuan from the end of March.
Xpeng Guides for Higher Q3 Deliveries
Xpeng expects third-quarter deliveries to reach between 115,000 and 121,000 vehicles. The forecast represents sequential growth of between 11.33% and 17.14%.
Third-quarter revenue is expected to range from 21.70 billion yuan to 23.40 billion yuan, representing sequential growth of 9.91% to 18.52%.
Xpeng delivered 38,027 vehicles in July. To meet its quarterly delivery guidance, the company would need to deliver between 76,973 and 82,973 vehicles during August and September, equivalent to an average of approximately 38,487 to 41,487 vehicles per month.
New Models and Physical AI Remain Priorities
Chairman and CEO He Xiaopeng said the consecutive performance of the GX and Mona L03 had increased the company’s confidence in its upcoming models.
Xpeng also expects mass production and commercialization of physical artificial intelligence technologies to accelerate over the coming year.
Earlier on Monday, Xpeng announced that its robotics subsidiary Dogotix had secured $900 million in conditional funding commitments at a post-money valuation of about $6.3 billion. The transaction is intended to create a separate financing channel for the capital-intensive robotics operation while allowing Xpeng to retain control.
