XPeng, Inc. Class A ((HK:9868)) has held its Q3 earnings call. Read on for the main highlights of the call.
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XPeng’s recent earnings call for Q3 2025 painted a picture of both triumphs and trials. The company celebrated substantial achievements in vehicle deliveries, international expansion, and technological advancements, notably through its partnership with Volkswagen. Despite these successes, XPeng faces challenges with declining vehicle margins and increased expenses, though it has managed to reduce its net loss.
Record Vehicle Deliveries
XPeng reported a remarkable milestone in Q3 2025 with vehicle deliveries reaching 116,007 units, representing a 149% increase compared to the previous year. This surge underscores the company’s growing market presence and consumer demand for its innovative vehicles.
Gross Margin Improvement
For the first time, XPeng’s gross margin exceeded 20% in Q3 2025, up from 15.3% in the same period of 2024. This improvement highlights the company’s effective cost management and operational efficiency.
Strong Revenue Growth
XPeng’s total revenues soared to RMB 20.38 billion for Q3 2025, marking a 101.8% increase year-over-year. This robust revenue growth reflects the company’s expanding footprint and successful sales strategies.
International Expansion
XPeng’s international presence continues to grow, with monthly overseas deliveries surpassing 5,000 units for the first time, a 79% increase year-over-year. The establishment of 56 new overseas stores further cements its global ambitions.
Technological Advancements
XPeng is at the forefront of innovation, planning to launch Robotaxi and humanoid robots in 2026. The company has also opened its SDK to partners, fostering collaboration and technological development.
Volkswagen Partnership
XPeng’s Turing AI SoC has been selected by Volkswagen, with revenue from this collaboration expected to ramp up in 2026. This partnership signifies a strategic alliance that could enhance XPeng’s technological capabilities and market reach.
Vehicle Margin Decrease
Despite overall growth, XPeng experienced a decrease in vehicle margin to 13.1% for Q3 2025, down from 14.3% in Q2 2025. This decline is attributed to targeted promotions aimed at boosting sales.
Increased R&D and SG&A Expenses
XPeng’s commitment to innovation is reflected in its increased R&D expenses, which rose by 48.7% year-over-year. Similarly, SG&A expenses increased by 52.6%, indicating a strategic investment in growth and development.
Continued Net Loss
The company reported a net loss of RMB 0.38 billion for Q3 2025, a significant reduction from RMB 1.81 billion year-over-year. This reduction demonstrates XPeng’s efforts to improve financial performance despite ongoing challenges.
Forward-Looking Guidance
XPeng’s guidance for the future is optimistic, with projections for fourth-quarter deliveries between 125,000 and 132,000 units. The company anticipates fourth-quarter revenue between RMB 21.5 billion and RMB 23 billion, reflecting substantial growth. XPeng is also focusing on its strategic initiatives in physical AI, with plans for mass production of its VLA 2.0 model, Robotaxi, and humanoid robots in 2026, alongside the introduction of seven new one-vehicle, dual-energy models next year.
In conclusion, XPeng’s Q3 2025 earnings call reveals a company on the rise, with impressive achievements in vehicle deliveries and international expansion. While challenges persist, particularly in vehicle margins and expenses, XPeng’s strategic partnerships and technological advancements position it well for future growth. Investors and market watchers will be keen to see how XPeng navigates these opportunities and challenges in the coming quarters.