XPeng’s Revenue Hits Record High but Posts RMB 1.81 Billion Loss
November 20. Che Dongxi News – Yesterday, XPeng Motors released its Q3 2024 financial report. The company achieved a record revenue of RMB 10.1 billion, an 18.4% increase year-over-year.
However, net losses for the third quarter reached RMB 1.81 billion. This marks an improvement from the RMB 3.89 billion loss in Q3 2023 but a significant 40.7% increase from the RMB 1.28 billion loss in Q2 2024.
XPeng’s vehicle sales revenue for Q3 2024 was RMB 8.8 billion, a 12.1% year-over-year increase and a 29.0% sequential rise from Q2 2024.
This growth was primarily driven by an increase in vehicle deliveries, with 46.533 units delivered during Q3 2024. up 16.3% compared to the same period in 2023.
XPeng also saw improvements in profit margins, with a Q3 2024 vehicle gross margin of 8.6%, compared to -6.1% in Q3 2023 and 6.4% in Q2 2024. The company attributes this improvement to lower costs and an optimized product mix.
Post-Report Surge in XPeng’s Stock Price
Following the report, XPeng’s U.S.-listed shares surged, boosting its market capitalization back into the RMB 100 billion club.
Despite the rise in net losses, XPeng demonstrated strong performance in revenue, gross profit, and deliveries. With new models such as the XPeng MONA M03 and P7+ gaining significant orders, XPeng is poised for stronger performance in the near future.
I. Revenue Up 24.5% QoQ; Net Loss Expands by 40.7%
For Q3 2024. XPeng reported:
- Revenue of RMB 10.1 billion (+18.4% YoY, +24.5% QoQ).
- Vehicle sales revenue of RMB 8.8 billion (+12.1% YoY, +29.0% QoQ).
- Gross margin at 15.3%, compared to -2.7% in Q3 2023 and 14.0% in Q2 2024.
- Vehicle gross margin at 8.6%, compared to -6.1% in Q3 2023 and 6.4% in Q2 2024.
Net losses were RMB 1.81 billion, down from RMB 3.89 billion in Q3 2023 but up 40.7% from Q2 2024’s RMB 1.28 billion.
II. Increased Spending Drives Losses
XPeng’s R&D spending rose to RMB 1.63 billion in Q3 2024. up 11.3% from RMB 1.47 billion in Q2 2024. The increase was attributed to expanding the product portfolio and developing new models.
Sales, general, and administrative expenses reached RMB 1.63 billion (+3.8% QoQ), driven by higher franchise store commission payouts, contributing to the rise in net losses.
As of October 31. 2024. XPeng had delivered 122.478 vehicles year-to-date, a strong foundation for its annual goal of 200.000-210.000 vehicles.
III. Positive Developments: Tech Showcases and Record Orders
XPeng recently hosted its 2024 AI Tech Day in Guangzhou, unveiling cutting-edge innovations like the XPower Super Electric System, Turing AI driving technology, and AI robots.
For Q4 2024. XPeng projects:
- Revenue of RMB 15.3–16.2 billion (+17.2%–24.1% YoY).
- Deliveries of 87.000–91.000 units (+44.6%–51.3% YoY).
This would nearly double Q3 deliveries, reflecting confidence in its competitive product lineup.
IV. Plans for 2025: AI and Next-Gen Vehicles
During the earnings call, CEO He Xiaopeng predicted that 2025–2027 would be a pivotal period for the Chinese automotive market, with EV penetration expected to exceed 85%. AI integration will reshape market share dynamics.
Key highlights of XPeng’s strategy:
- Major breakthroughs in autonomous driving and vehicle intelligence starting in 2025.
- The XPeng P7+ and MONA M03 are now produced in double shifts, with November deliveries expected to surpass 30.000 units.
- Plans to introduce four new models in 2025. including a new super electric version, while revamping existing ones.
The P7+ marks a new milestone, with its technologies set to boost gross margins for upcoming models in 2025 and 2026.
XPeng expects to achieve positive free cash flow in H2 2024. with year-end cash reserves reaching RMB 40 billion.
V. Global Ambitions and New Technology
XPeng aims to use its next-gen electric technology and XPower system to expand into global markets, offering dual-energy solutions.
For autonomous driving, XPeng plans to launch an end-to-end parking-to-parking driving system by 2025. Its AI-powered platforms will elevate XPeng’s leadership in intelligent driving, positioning it as the industry’s benchmark.
Conclusion: Strong Momentum Into 2025
XPeng’s Q3 2024 report highlights robust growth in revenue, deliveries, and margins despite increased net losses. With significant investments in R&D and market expansion, the company is well-positioned to enhance competitiveness.
Looking ahead, XPeng plans to launch at least four new models by 2025. aiming to solidify its market position and maintain growth in an intensely competitive EV market.
