Xpeng gains momentum with record quarter & fresh financing

The Chinese EV maker has reported sharp quarterly revenue growth and reduced losses, while announcing new financing support. Xpeng has also seen a marked increase in overseas shipments of its vehicles.

In one of its strongest quarters to date, Xpeng saw its revenue more than double to 18.27bn yuan (€2.2bn~) in the three months to June. This was largely driven by a record number of vehicle sales – 103,181 vehicles were delivered, an increase of 241.6 per cent over the same period in 2024. Vehicle sales alone brought in 16.88bn yuan (€2.02bn~), with losses narrowing to 480m yuan (€57.6m) – less than half of the 1.28bn yuan (€153m) deficit the company faced a year earlier. Exports played a key role here, with sales outside of China reaching 18,701 units in H1 2025 – what they claim to be a 217 per cent increase.

Despite all this, profitability continues to elude Xpeng, but margins are moving in the right direction: gross margin rose to 17.3 per cent from 14 per cent, with vehicle margin more than doubling to 14.3 per cent. The company expects this growth to continue, claiming the results show a ‘new historical high’ and a record quarter. It also states it is on track for between 113,000 and 118,000 deliveries plus revenues of up to 21bn yuan in Q3 of 2025 – again, almost double the level of last year.

Xiaopeng He, XPENG’s CEO and Chairman, commented: “In the second quarter of 2025, XPENG achieved record-high performance across key operational and financial metrics, including vehicle deliveries, revenue, gross margin, and cash position.”

Dr Hongdi Brian Gu, Vice Chairman of XPENG, added: “Our vehicle margin has improved for eight consecutive quarters. In the second quarter, the vehicle margin increased by 2.8 percentage points quarter-on-quarter to 14.3 per cent, while the company’s overall gross margin rose to 17.3 per cent, reaching a new historical high.”

Just before releasing its quarterly report, Xpeng announced it had secured ¥10 billion (€1.2 billion) credit line from China CITIC Bank’s Guangzhou branch. This financing is intended to improve the company’s liquidity and support day-to-day operations as the company continues to invest in new models and technology. According to CNEV Post, Xpeng said the credit facility will be “significant for Xpeng’s cash utilisation efficiency and settlement cost management optimisation”.

xiaopeng.com (finances), cnevpost.com (credit)