Xpeng Posts Record $2.55B Q2 Revenue Amid Chinese EV Price War

- Xpeng posts record $2.55 billion revenue boosted by strong Q2 deliveries - Net losses hit five-year low as demand surges despite price war Chinese electric vehicle maker Xpeng posted record Q2 revenue and deliveries, and despite fierce domestic competition, the company also cut its net losses in half. Xpeng attributed its success to cost-cutting measures, improved product mix, technological advancements, and strategic collaborations. On August 19, 2025, CnEVPost reported that Xpeng generated a record revenue of 18.27 billion yuan ($2.55 billion), marking a 125% year-over-year increase. Record vehicle deliveries of 103,181 units for the quarter fueled this growth. While China’s ongoing EV price war has pressured automakers’ profitability, Xpeng reduced its net loss to 480 million yuan, its lowest level since 2020. Key efficiency metrics demonstrated Xpeng's turnaround, as its gross margin reached a record 17.3%, while its vehicle margin more than doubled year-over-year to 14.3%. These gains reflect cost-control initiatives and a focus on higher-margin models. Looking ahead, Xpeng forecasts its Q3 2025 revenue will nearly double, projecting deliveries between 113,000 and 118,000 vehicles. Xpeng's cash reserves also rose to 47.6 billion yuan, bolstering future growth through R&D investment. Xpeng's proprietary "Turing" chip, an AI processor that enhances self-driving capabilities, is central to its technological strategy. According to CnEVPost on August 19, the chip handles complex AI workloads and supports neural networks with up to 30 billion parameters, enabling Level 4 autonomous driving features. Xpeng plans to integrate the Turing chip into its mass-production models to strengthen its market position. Xpeng is also deepening its strategic partnership with Volkswagen. According to MarketScreener on August 19, their collaboration now includes developing a shared Electrical/Electronic (E/E) architecture that will support EVs, plug-in hybrids, and gasoline-powered vehicles in China. This alliance validates Xpeng’s technology, opens new revenue streams, and enhances economies of scale. Reports suggest Volkswagen may integrate Xpeng’s Turing chip into its vehicle models in China. China's EV market remains challenging, as over 50 players engage in a price war that has driven record discounts and shrinking profit margins. Yet Xpeng remains resilient, leveraging technology, cost efficiency, and partnerships to navigate industry headwinds. Its strong cash reserves and optimistic Q3 outlook signal confidence in sustained growth and improved profitability.