Chinese EV maker Xpeng trims losses on 23% revenue rise
The carmaker expects revenue to increase by up to 140 per cent from a year earlier in the first quarter
The Guangzhou-based carmaker on Tuesday said its loss for the quarter narrowed to 1.33 billion yuan (US$184 million) from 1.35 billion yuan a year earlier. Analysts polled by Bloomberg expected Xpeng to report a loss of 1.59 billion yuan. The company’s revenue rose 23.4 per cent to 16.1 billion yuan from a year earlier. Analysts expected revenue of 16.02 billion yuan.
Xpeng said its gross margin rose to 14.4 per cent in the fourth quarter from 6.2 per cent a year earlier, but fell from 15.3 per cent in the third quarter. The overall gross margin – a measure of efficiency in managing costs relative to revenue – remained “stable at the mid-teens level”, the firm said.
EV makers on the mainland are struggling with worries about production overcapacity amid a raging price war. These factors have forced them to figure out how to expand outside China.
The carmaker said it would aim to improve profitability and free cash flow with the launch of more new products and global expansion. It expects first-quarter revenue this year to be between 15 billion yuan and 15.7 billion yuan, which would translate to a year-on-year increase of 129.1 per cent to 139.8 per cent.
“With the launch of more competitive products and ongoing global expansion, I’m confident that Xpeng’s total sales in 2025 will more than double that of 2024,” said He Xiaopeng, chairman and CEO, during a company conference call on Tuesday. “This will significantly increase our market share in both the Chinese and global smart EV sectors.”
The firm said it plans to launch new models or updated versions – all equipped with its latest next generation AI technologies – every quarter starting this year.