XPeng reports record Q2, accelerates AI-driven growth

XPeng posted a record-breaking second quarter in 2025, with deliveries, revenue, and gross margin all hitting historic highs, underscoring the company's rapid scale-up in China's competitive electric vehicle market.

Total revenue reached 18.27 billion yuan ($2.54 billion), up 125 percent year-over-year, while vehicle deliveries soared 241.6 percent to 103,181 units, setting a single-quarter record.

Automotive gross margin climbed to 14.3 percent, up 7.9 percentage points, marking the eighth consecutive quarter of improvement.

Cash reserves stood at 47.57 billion yuan as of June 30, up 2.29 billion yuan from March, with free cash flow exceeding 2 billion yuan, reflecting XPeng's progress toward self-sustaining operations.

Looking ahead, XPeng expects third-quarter deliveries of 113,000–118,000 vehicles, up 143 percent–154 percent year-over-year, with revenue projected at 19.6–21 billion yuan, representing 94 percent–108 percent growth.

The company continues to roll out upgraded and new models, with the P7 the latest.

CEO He Xiaopeng said the company aims for the P7 to rank among the top three EV sedans under 300,000 yuan and expects monthly deliveries to exceed 40,000 starting in September.

XPeng also plans to launch a range-extending version of the X9 in the fourth quarter, marking its entry into the competitive but fast-growing REEV market.

The company is pushing backing the frontiers in AI and autonomous driving. Its G7 Ultra and P7 models feature three Turing AI chips and local "VLA+VLM" large models, achieving L3-level autonomous driving.

The company said it will start mass-production of L4-capable vehicles in 2026, adding that it will conduct regional Robotaxi trials in the year as well.

Internationally, XPeng has entered 46 markets, including the UK, Italy, and Ireland, delivering over 18,000 vehicles in the first half, a 200 percent increase year-over-year. Local production has begun in Indonesia.