XPeng's Q2 financial report is "explosive": Revenue soars by 125%, and gross profit margin surpasses Tesla's.

If you had asked me about XPeng Motors a year ago, I might have said that it was going through a severe test.

However, on August 19th, XPeng Motors released its financial report for the second quarter of 2025, telling a completely different story: it has not only recovered but also regained its vitality and even developed some "abs."

The financial report shows that in the second quarter of 2025, XPeng Motors set new records in multiple key indicators such as sales volume, revenue, gross profit margin, and cash reserves. The total revenue in the second quarter reached 18.27 billion yuan, a year - on - year increase of 125.3%. The delivery volume was 103,200 vehicles, a year - on - year increase of 241.6%. The gross profit margin was 17.3%, a year - on - year increase of 3.3 percentage points. The cash reserves increased by more than 2.29 billion yuan quarter - on - quarter to 47.57 billion yuan.

After the release of the financial report, XPeng's US - listed stocks rose 3.72% to $20.64, and its latest total market value is $19.645 billion. Since the beginning of this year, XPeng's stock price has risen 68.36%, and its market value has increased by $7.7 billion.

So, how did XPeng achieve this transformation? Let's explore the reasons behind it together.

01

Sold 197,000 vehicles in half a year with a revenue of 34 billion

If we compare the financial report to a "medical examination report," when measuring the health of a growing car company, we mainly look at four key indicators: sales volume, revenue, gross profit margin, and cash reserves.

XPeng Motors had an outstanding sales performance in the first half of the year. Data shows that XPeng delivered a total of 197,200 vehicles, nearly 3.8 times that of the same period last year, which also exceeded its total delivery volume in 2024. Among them, 103,200 vehicles were delivered in the second quarter, a year - on - year increase of 241.6%.

Although XPeng's sales volume ranking is not the first among new - force brands, lagging behind Leapmotor, Hongmeng Zhixing, and Li Auto, it is the only car company that has completed more than half of its annual target. Its annual target is to sell 380,000 vehicles, and it has completed 52% in the first half of the year.

Despite the pleasing sales volume, there is some imbalance in XPeng's product structure. Sedans are the absolute main force of XPeng's sales. In the first half of the year, the MONA M03 and P7+ together sold more than 136,000 vehicles, accounting for nearly 70% of the total sales volume. In contrast, SUVs performed mediocrely. In the first half of the year, the XPeng G6 and XPeng G9 together sold nearly 35,500 vehicles, accounting for only 18% of the overall sales volume.

This seems a bit "maverick" in the Chinese market where SUVs are more popular. You know, the sales volume of Tesla Model Y is basically twice that of Model 3.

The main core indicators in XPeng Motors' Q2 2025 financial report, such as sales volume, revenue, and gross profit margin, all set records | Image source: Screenshot of the financial report

The more cars are sold, the more money is received. The financial report shows that in the first half of 2025, XPeng Motors' total revenue reached 34.09 billion yuan, a 132.5% increase compared to the same period in 2024. Among them, the total revenue in the second quarter was 18.27 billion yuan, a significant increase of 125.3% compared to the same period in 2024 and a 15.6% increase compared to the first quarter of 2025.

If delivery volume and revenue are the "appearance," then the gross profit margin is the "essence." It is the core indicator to measure a company's "hematopoietic" ability, directly reflecting the company's cost - control ability and product bargaining power.

Data shows that XPeng's gross profit margin in the second quarter of 2025 was 17.3%, exceeding Tesla's 17.2% in the second quarter. Among them, XPeng's automotive gross profit margin in Q2 was 14.3%, compared with 6.4% in the same period in 2024. Simply put, the gross profit per vehicle sold has doubled.

This is mainly due to two aspects: first, through technological and production optimization, the manufacturing cost per vehicle has been effectively reduced; second, by launching more popular models like the G7, which may have higher profit margins, the product portfolio has been improved.

02

Halved losses and nearly 50 billion in cash reserves

In addition to the above, in 2025, the Chinese electric vehicle industry has entered a new "big test" - the battle for profitability. "Classmates" like Xiaomi, NIO, and Leapmotor have all set goals, saying "we will start making money this year."

So, who is the "top student" in this exam?

On August 18th, Leapmotor's net profit in the first half of the year was 30 million yuan, achieving positive net profit for the first half - year. Geely's ZEEKR also announced that it achieved an operating profit of 285 million yuan in the second quarter, the first time it achieved positive operating profit. Xiaomi Auto's business operating loss in the second quarter was significantly narrowed to 300 million yuan, and it is expected to achieve profitability in the second half of the year.

Seeing this, you may ask: How much money did XPeng actually make?

The financial report shows that XPeng's net loss in the second quarter of 2025 was 480 million yuan.

Seeing the word "loss," many people may think, "Isn't this company still losing money?" Yes, but the key is to look at the trend. The net loss in the second quarter of 2024 was 1.28 billion yuan, and in the first quarter of 2025, it was 660 million yuan.

The loss has been significantly narrowed by more than half! This is a strong signal of "stopping the bleeding."

The upcoming new XPeng P7 will be another key move for XPeng to enter the 200,000 - 300,000 yuan market | Image source: XPeng Motors

For example, it's like a bucket that was leaking water quickly, and now you've successfully blocked most of the holes. For a company that is still spending a lot of money on R & D and building factories, "losing less money" is as great a positive signal as "starting to make money"! This shows that XPeng is getting closer and closer to the ultimate goal of profitability.

He Xiaopeng, the chairman and CEO of XPeng Motors, also said before that achieving profitability in the fourth quarter "is not a challenging goal," and this year's final result will be better than people expect.

In addition to looking at profitability, there is a more critical indicator that can show whether a company has a sense of "security." That is - how much money is in its "wallet." As of the end of June 2025, the total amount of cash, cash equivalents, and short - term investments held by XPeng was as high as 47.57 billion yuan.

"With food in hand, one feels secure." Nearly 50 billion in cash reserves means that XPeng has sufficient "ammunition" to deal with future competition and continue to invest in R & D without worrying about next month's "salary."

Overall, XPeng is a bit like a "top student" with great potential: although it has not yet turned a profit, its sales volume and revenue have skyrocketed, its gross profit margin has doubled, and its losses have been greatly reduced. It has great potential.

03

The "tech - geek" XPeng starts talking about "emotions"

In the past, people thought XPeng was a "tech - geek" who only knew how to bury his head in researching technology. Now, XPeng's signature skill - AI technology - has not only been retained but has become even stronger.

In June this year, it showed off its "muscles" again: the "Chasing Light Panoramic" head - up display jointly developed with Huawei; on the newly released XPeng G7, L3 - level computing power was implemented, bringing 2000 TOPS of computing power + a fully local AI model; XPeng released an ultra - large model with 72 billion parameters at the world - class AI conference (CVPR 2025).

So, XPeng's technological strength is still its strongest foundation.

But He Xiaopeng realized that a good car not only needs to be technologically advanced but also make people "feel something." So, He Xiaopeng put forward four new standards: design, appearance, quality, and emotion. Among them, the word "emotion" is one of the words He Xiaopeng has mentioned the most recently.

The word "emotion" is very interesting. Think about why you like Pop Mart's blind boxes or why the Xiaomi SU7 went viral on WeChat Moments as soon as it was released. Because in addition to being useful and good - looking, they also bring you happiness and a sense of satisfaction.

Design and color have also become one of XPeng's core competitiveness | Image source: XPeng Motors

XPeng has also started to work hard in this area. For example, at the premiere of the new P7, He Xiaopeng spent more than half an hour specifically talking about the car's body colors and invited four celebrities, Chen Yanxi, Zhu Zhengting, Ning Zetao, and Zhong Chuxi, to endorse different colors. Instead of a bunch of cold parameters, XPeng wants to talk to you about "appearance" and "feelings," making you feel that this car has temperature and taste.

Actually, XPeng has also experienced the "darkest moment" of falling from the peak to the bottom. But it is precisely by relying on this new idea of walking on two legs - "technology" and "emotion" - that it has completed a very beautiful comeback and regained market recognition.

The competition in the automotive industry is very fierce, like a never - ending race. The leader today may be overtaken by new competitors tomorrow. The biggest test XPeng faces now is to build its own solid "moat" when the final circle is rapidly shrinking. The final outcome of this battle is still unknown, but this undoubtedly makes XPeng's story full of suspense and highlights.

This article is from the WeChat public account "GeekPark" (ID: geekpark). Author: Zhou Yongliang, Editor: Jing Yu. Republished by 36Kr with permission.