XPeng Q3 Results Show Narrowed Loss, Weak Q4 Outlook
XPeng Q3 results show record deliveries and a narrowed net loss but weak Q4 guidance that may pressure near-term profit expectations and positioning.
KEY TAKEAWAYS
- Record vehicle deliveries reached 116,007 units and revenue grew 101.8% year-over-year.
- GAAP net loss narrowed to $50 million, the smallest quarterly loss since 2020.
- Q4 guidance implies roughly 33.5% to 42.8% revenue growth but signals price-war margin risk.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
On Nov. 17, 2025, XPeng Inc. (NYSE: XPEV) reported its smallest quarterly net loss since 2020, record vehicle deliveries and an improved gross margin, but issued fourth-quarter revenue guidance reflecting intense competition and price pressure in China.
Q3 Results and Metrics
XPeng’s unaudited third-quarter 2025 results showed revenue of RMB 20.4 billion, up 101.8% year-over-year and 11.5% quarter-over-quarter. Vehicle deliveries reached 116,007 units, a 149.3% increase from a year earlier.
The company posted a GAAP net loss of RMB 380 million ($50 million), its smallest since the third quarter of 2020. On a non-GAAP basis, the net loss was RMB 150 million.
Gross margin improved to 20.1% from 15.3% a year earlier and 17.3% in the prior quarter. Vehicle margin rose to 13.1% from 8.6% year-over-year but declined from 14.3% in the previous quarter.
Operating expenses increased with growth. Research and development costs climbed 48.7% year-over-year to RMB 2.4 billion, while selling, general and administrative expenses rose 52.6% to RMB 2.5 billion. Service and other revenue grew 78.1% to RMB 2.3 billion, with the service business margin expanding to 74.6% from 60.1% a year earlier. Cash and cash equivalents totaled RMB 48.3 billion as of Sept. 30, 2025.
Guidance and Competitive Risks
For the fourth quarter, XPeng set revenue guidance between RMB 21.5 billion and RMB 23.0 billion, implying roughly 33.5% to 42.8% year-over-year growth, with vehicle deliveries forecast at 125,000 to 132,000 units.
Management aims for quarterly profitability in Q4 but cautioned that product transitions, margin volatility and intensified competition, including a Chinese electric-vehicle price war, could affect results. The company said, “The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.”
XPeng’s results highlight a tension in its push for scale: record deliveries and stronger overall margins came with rising R&D and overhead costs. The conservative guidance signals that price pressure and product mix shifts may limit near-term earnings progress.
