Chinese electric vehicle maker Xpeng expects significant revenue growth in Q3 2025 amid record sales and reduced losses.
Record Sales and Shrinking Losses
Xpeng forecasts revenue between 19.6 billion and 21 billion yuan ($2.73 - $3 billion), a rise of up to 108% year-on-year. Deliveries are projected to hit 118,000 vehicles, more than double last year's figures. For Q2 2025, the company reported a 125% increase in revenue to 18.27 billion yuan, though this slightly missed analysts' expectations. Losses were reduced to 480 million yuan, the lowest since 2020.
Partnerships and Technological Initiatives
Xpeng is deepening its collaboration with other automakers, including Volkswagen. Initially focused on battery-electric vehicles, the partnership has expanded to include plug-in hybrids and gasoline platforms. The company is also investing in its in-house Turing chip designed for autonomous driving systems. Analyst Rosalie Chan from Third Bridge noted, 'XPeng’s in-house Turing chip, once mass-produced, could be a pivotal step in the company’s intelligent driving ambitions.'
Competition in the Electric Vehicle Market
China has become the largest auto market due to its ability to produce vehicles at lower costs compared to Western rivals. However, this has also intensified competition, leading to a price war. Despite the pressures, Xpeng remains optimistic, believing that a combination of AI, tighter partner integration, and steady cost reductions will help it thrive in the evolving market.
Xpeng showcases impressive results amid growing competition in the electric vehicle sector, aiming to leverage new technologies and partnerships for sustainable growth and profitability.
