XPeng Net Loss Shrinks, Putting Profitability Within Sight — Update

By Jiahui Huang

XPeng significantly narrowed its net loss in the third quarter thanks to robust sales and margins, bringing the Chinese carmaker within striking distance of profitability.

The solid performance comes as XPeng extends its strong sales streak, with deliveries reaching a new high in October despite a competitive Chinese auto market, supported by the company's advanced autonomous-driving technology and strong product mix. The automaker has narrowed losses over the past few quarters, and analysts expect it to become profitable in the fourth quarter.

The Guangzhou-based company on Monday reported a net loss of 380.9 million yuan, equivalent to $53.7 million, narrowing sharply from 1.81 billion yuan a year earlier. Revenue doubled to 20.38 billion yuan as the carmaker delivered a record 116,007 units during the period.

Both its top and bottom lines were ahead of analysts' expectations, according to Visible Alpha.

XPeng's quarterly gross margin exceeded the 20% threshold for the first time, rising to 20.1% from 15.3% a year earlier and 17.3% in the second quarter. Its vehicle margin was 13.1%, improving from the previous year due to continued cost reductions, the company said.

Once an emerging brand for electric vehicles, XPeng has made forays into cutting-edge segments beyond cars, including investments in flying vehicles, humanoid robots and robotaxis. The company earlier this month unveiled its humanoid robot, IRON, with plans for mass production by the end of next year. It also said it plans to release three robotaxi models in 2026 for ride-hailing services.

"We are in the early stages of rapid expansion in terms of sales volume and market share, with robotaxi and humanoid robots advancing rapidly toward mass production," Chief Executive Xiaopeng He said. "I firmly believe XPeng will evolve into a global embodied AI company."

The innovations align with China's next five-year plan that prioritizes technology self-reliance and advanced manufacturing. They have also become a popular theme among retail investors as Beijing emphasizes a high-tech, innovation-led growth model.

Optimism surrounding XPeng's developments has helped its Hong Kong-listed stock more than double this year, far outpacing rivals like NIO and Li Auto, whose shares have risen 42% and fallen 20%, respectively.

In the fourth quarter, XPeng said it expects deliveries to rise to 125,000-132,000 vehicles and revenue to grow to between 21.5 billion yuan and 23.0 billion yuan.

The company's American depositary receipts were recently 3.1% lower in premarket trading after the earnings release.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

November 17, 2025 06:11 ET (11:11 GMT)