XPeng’s (XPEV) Q1 2025 report details lowest net loss in five years and a record gross margin

EV automaker XPeng Motors shared its unaudited financial report for Q1 2025, and nearly all of its data points to growth and potential as the Chinese brand continues its quest to become globally recognized. As such, XPeng’s predictions for Q2 continue massive year-over-year growth.

Regarding Chinese EV automotive brands, XPeng Motors ($XPEV) is easily one of the more prominent and newsworthy, especially as it continues to globalize, entering new markets such as Italy earlier this month.

As outlined in a December 2024 internal letter from XPeng founder, chairman, and CEO He Xiaopeng, the company has huge goals for 2025 and beyond. In Q1 2025, we’ve already seen XPeng unveil its new G7 SUV and hit 100,000 builds of its new MONA M03 sedan (a Max trim of which was just unveiled yesterday).

So far, so good.

Advertisement – scroll for more content

XPeng Motors shared its Q1 2025 financial report today, which provides room for optimism. The automaker’s continued YoY growth and dwindling net losses suggest a positive outlook for the rest of the year.

XPeng’s Q1 report shows 141.5% YoY increase in revenue

The full Q1 2025 report, available from XPeng Motors here, states that the company’s quarterly revenues were RMB 15.81 billion ($2.18 billion), representing an increase of 141.5% compared to Q1 2024. However, that number is slightly down (1.8% compared to Q4 2024).

Similarly, vehicle sales revenues for Q1 were RMB 14.37 billion ($1.98 billion), up 159.2% from the same period of 2024 but down 2.1% from Q4 2024. The vehicle margin, which is the gross profit of vehicle sales as a percentage of quarterly sales revenue, was 10.5%, up from 5.5% in Q1 2024 and 10.0% in Q4 2024.

Per the Q1 2025 report, XPeng’s Gross margin was its highest ever at 15.6%, up from 12.9% in Q1 2024 and 14.4% a quarter ago. One of the key takeaways from today’s report is XPeng’s decreasing net loss. That tally has dropped for three consecutive quarters and as of the end of Q1 2025, sat at RMB 0.66 billion ($91.4 million), compared with RMB 1.37 billion ($189.8 million) for XPeng’s same period in 2024 and RMB 1.33 billion ($184.2 million) for Q4 2024.

XPeng’s total BEV deliveries for Q1 2025 were 94,008 units, representing a YoY increase of 330.8%. XPeng CEO He Xiaopeng spoke about the company’s Q1 report:

Despite seasonality for auto sales, our quarterly deliveries hit a new historical high, making us the top-selling automaker among emerging EV companies. Positive market feedback strengthened our confidence in our three-year product cycle. We remain committed to our steadfast long-term growth strategy and continue to launch more blockbuster products. We are just beginning to unleash our growth potential. I believe our strong product cycle, global expansion and accelerated adoption of physical AI technologies, will fuel strong and sustainable growth for XPeng.

Looking ahead, XPeng Motors expects to deliver between 102,000 and 108,000 EVs in Q2 2025, representing YoY growth between 237.7% and 257.5%. Additionally, the Chinese automaker predicts total revenues for Q2 2025 to be between RMB 17.5 billion ($2.4 billion) and RMB 18.7 billion ($2.6 billion), representing YoY growth between approximately 115.7% and 130.5%.

The company’s new MONA M03 sedan will launch in China on May 28.