Xpeng Achieves 80.3% Net Loss Reduction in 2025 with Strong Revenue Growth

Xpeng, the Guangzhou-based new energy vehicle manufacturer, released its 2025 financial summary on March 20, highlighting significant improvements in profitability and sales. The company's net loss narrowed by 80.3% to 1.14 billion yuan (about 170 million USD), compared to the 5.79 billion yuan (840 million USD) loss in 2024. Excluding share-based compensation and fair value losses, the non-GAAP net loss was 460 million yuan (66.6 million USD). Revenue rose 87.7% year-over-year to 76.72 billion yuan (11.12 billion USD), with automobile sales contributing 68.38 billion yuan (9.91 billion USD), up 90.8% from the prior year. The gross profit margin also improved to 18.9%, from 14.3% in 2024.

Globally, Xpeng delivered 429,445 vehicles, a 125.9% increase, including 383,873 units in China, which rose 119.4% according to China EV DataTracker. A key milestone occurred in the fourth quarter of 2025, when Xpeng recorded its first net profit of 380 million yuan (55 million USD), reversing a 1.33 billion yuan (190 million USD) loss from Q4 2024.

This progress resulted from successful product launches, including the Xpeng X9 minivan with an extended-range electric vehicle powertrain, the refreshed Xpeng P7 sedan, and the Xpeng G7 crossover, as well as popular models like the Mona M03 and P7+. The company also expanded its technology partnerships, such as providing solutions to Volkswagen.

Looking ahead, Xpeng faces challenges, with January-February 2026 deliveries totaling 28,415 units, down 49.5% year-over-year, due to the phase-out of new energy vehicle subsidies in China. To address this, the firm has begun mass production of its full-size flagship SUV, the Xpeng GX, with more models planned for the year.