XPeng Inc. (XPEV) posted strong growth in Q2 2025, with vehicle deliveries surging 241.6% year-over-year to 103,181 units. Meanwhile, revenue also jumped 125.3% to ¥18.27 billion, fueled by robust demand for its vehicles. CEO Xiaopeng He praised the results, highlighting the company’s “record-high performance across key operational and financial metrics.” Following the results, XPEV stock gained over 4% in pre-market trading.
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XPeng’s Q2 Results Snapshot
Beyond revenue and deliveries, XPeng also improved its vehicle margin and overall gross margin despite intense price competition in the industry. Notably, XPeng’s vehicle margin climbed 7.9 percentage points year-over-year in Q2 to 14.3%. Meanwhile, its overall gross margin rose to 17.3%, marking a new all-time high.
Additionally, the company reported a net loss of ¥480 million in Q2, marking a sharp improvement from the ¥1.28 billion loss in the same period last year.
Overall, the strong growth was driven by sustained demand for the Mona M03 and P7+ sedans, refreshed versions of the G6, G9, and X9 models, and the launch of the new G7 SUV. Launched just a year ago, the M03 has already become one of XPeng’s top-selling models.
XPeng’s Outlook
By 2025, XPeng had upgraded its smart and electrification platforms, reinforcing its edge over competitors. Looking ahead, the company’s focus on technology upgrades and sustainable growth is expected to drive faster sales and stronger profitability.
For Q3, XPeng expects to deliver 113,000–118,000 vehicles, with revenue projected between ¥19.6 billion and ¥21.0 billion ($2.7–$2.9 billion), reflecting growth of 94% to 108% year over year.
Is XPeng a Good Stock to Invest In?
According to TipRanks, Wall Street has a Moderate Buy consensus rating on XPEV stock, based on six Buys, three Holds, and one Sell assigned in the last three months. The average XPeng stock price target of $24.45 implies 23% upside potential.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
