XPeng (XPEV) is on watch after the Chinese electric vehicle maker posted a mixed Q3 earnings report.
Revenue increased 101.8% year-over-year to reach RMB20.38 billion ($2.86 billion) and was up 11.5% from the prior quarter. Vehicle sales revenue grew to RMB18.05 billion, up 105.3% year-over-year and 6.9% quarter-over-quarter, driven by new model launches. Notably, XPeng’s gross margin rate hit a record 20.1%, up from 15.3% last year and 17.3% in Q2. Vehicle margin was 13.1% for the quarter of 2025, compared with 8.6% for the same period a year ago. The margin improvement helped steer the company closer to profitability.
XPeng (XPEV) delivered 116,007 vehicles during the quarter. The tally was up 149.3% from the same quarter a year ago and set a new quarterly record.
Looking ahead, XPeng (XPEV) expects Q4 deliveries of between 125,000 and 132,000, representing a year-over-year increase of approximately 36.6% to 44.3%. Total revenue is expected to land in a range of between RMB21.5 billion and RMB23.0 billion, representing a year-over-year increase of approximately 33.5% to 42.8%. The 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.
“We are in the early stages of rapid expansion in terms of sales volume and market share, with robotaxis and humanoid robots advancing rapidly toward mass production,” highlighted CEO Xiaopeng He. “Centered around physical AI applications, we are developing a comprehensive portfolio of technologies and products, alongside a thriving business ecosystem, thereby creating greater value for customers and shareholders worldwide,” he added.
Weighing in on the report, Morgan Stanley analyst Tim Hsiao noted that the better-than-anticipated Q3 loss for XPeng (XPEV) was driven by higher tech service revenue and improved margins. However, he noted the Q4 guidance from XPEV implied a slight quarter-over-quarter decline in average selling prices.
Shares of XPeng (XPEV) fell 2.8% in premarket trading on Monday.