Chinese electric vehicle maker Xpeng Inc (NYSE:XPEV) posted record quarterly deliveries and narrowed its net loss in the first quarter of 2025, sending its US-listed shares up nearly 12% in early trading on Tuesday.
The Guangzhou-based company delivered 94,008 vehicles in the quarter ended March 31, marking a 331% jump from a year earlier and setting a new quarterly record.
Revenue more than doubled to $2.18 billion, while adjusted losses per share narrowed to $0.06, beating market expectations.
XPeng said improved gross margins and sustained cost controls helped reduce losses. Vehicle gross margin rose for a seventh consecutive quarter to a record 15.6%, while free cash flow exceeded RMB 3 billion ($415 million) for the quarter.
Monthly deliveries have exceeded 30,000 units for six consecutive months, bolstered by strong demand for the company’s new models. The MONA M03 surpassed 100,000 deliveries within eight months, making it the top-selling A-class pure electric sedan. Meanwhile, the recently launched P7+ reached 50,000 units in just five months.
XPeng forecast second-quarter deliveries between 102,000 and 108,000 vehicles, up roughly 238% to 258% from a year earlier. Revenue is expected to reach between RMB 17.5 billion and RMB 18.7 billion, representing growth of up to 130.5%.
The company reiterated it expects to achieve profitability in the fourth quarter and generate substantial free cash flow for the full year.
XPeng’s overseas business also showed momentum, with Q1 overseas deliveries increasing by more than 31,700 vehicles year-over-year. The company said it aims to significantly expand its international footprint over the next three years, positioning exports as a major driver of sales and profit growth.
XPeng shares have rallied 66% so far this year on the back of accelerating deliveries and investor optimism about its path to profitability.