Chinese electric vehicle manufacturer Xpeng Holdings has witnessed a remarkable 66% surge in its share price, driven by exceptional sales performance, reduced losses, and ambitious expansion plans. The company’s projected delivery target of 102,000 to 108,000 EVs for the second quarter of 2025 signals a significant transformation in China’s competitive automotive sector.

The Guangzhou-based automaker’s first-quarter 2025 results demonstrate impressive growth, with record-breaking deliveries of 94,008 vehicles—a 330.8% increase from the previous year. Revenue climbed to RMB 15.81 billion, marking a 141.5% year-over-year rise and exceeding market expectations during traditionally slower sales periods.

Financial performance indicators show substantial improvement, with gross margins reaching an all-time high of 15.6% and vehicle margins improving to 10.5%. The company successfully narrowed its net loss to RMB 660 million whilst generating positive cash flow exceeding RMB 3 billion. Cash reserves strengthened to RMB 45.28 billion, representing a RMB 3.3 billion increase from the previous quarter.

Looking towards the second quarter, Xpeng projects deliveries between 102,000 and 108,000 units, representing a remarkable year-over-year growth of 237.7% to 257.5%. Revenue forecasts range between RMB 17.5 billion and RMB 18.7 billion, surpassing analyst expectations and reinforcing the company’s position as a leading emerging EV manufacturer.

The company’s success stems from its strategic focus on affordable vehicles equipped with advanced technology, particularly in driver assistance systems and in-car operating platforms. This approach has resonated strongly with middle-class Chinese consumers, whilst establishing Xpeng as a leader in China’s ADAS market.

International expansion has become a crucial growth driver, with Q1 2025 exports reaching 7,615 vehicles—an 8.1% share of total deliveries and a 370% year-over-year increase. The company now maintains prominent positions in nine overseas markets, including Singapore, Norway, the UK, Indonesia, Italy, and Poland.

Innovation remains central to Xpeng’s strategy, with plans to launch approximately 20 new models between 2025 and 2026. The upcoming MONA M03 Max and G7 SUV models, scheduled for mid-2025 release, will showcase the company’s latest AI mobility advancements. Additionally, Xpeng is investing heavily in robotics and artificial intelligence, with plans to introduce humanoid robots by 2026.

Market analysts project Xpeng will achieve profitability by the fourth quarter of 2025, with anticipated total vehicle deliveries of 430,000 units in 2025, rising to 700,000 by 2027. This optimistic outlook reflects robust market demand, expanding global presence, and a diverse product portfolio catering to various consumer segments.

News Source: CNBC