Xpeng Inc (NYSE:XPEV)’s US-listed shares fell nearly 5% in early trading on Friday, as a weaker near-term outlook overshadowed the company’s first-ever quarterly profit.
The Chinese electric vehicle maker reported a fourth-quarter net profit of RMB0.38 billion ($54.8 million), compared with a loss of RMB1.33 billion a year earlier and a loss in the prior quarter.
The Wall Street consensus was for the company to nearly break even, with a projected loss of about $2.8 million.
Quarterly revenue rose 38.2% year-over-year to RMB22.25 billion ($3.18 billion), while vehicle sales revenue increased 30%. Gross margin improved to 21.3% from 14.4% a year earlier, and vehicle margin climbed to 13%.
For the full year, XPeng delivered 429,445 vehicles, up 125.9% from the prior year, with revenue rising 87.7% to RMB76.72 billion. The company ended 2025 with RMB47.66 billion ($6.81 billion) in cash.
“In 2025, XPENG delivered a total of 429,445 vehicles, representing a 125.9% year-over-year increase,” CEO Xiaopeng He said, highlighting the company’s expanding scale.
He added that XPeng is continuing to “push the boundaries of Physical AI,” with a focus on accelerating commercialization of new technologies and growing its global presence.
He also pointed to broader ambitions beyond vehicle sales, describing what he sees as a turning point for the company’s technology roadmap. XPeng aims to expand its share in AI-defined vehicles, advance from L2+ driver assistance toward L4 autonomy, and bring its next-generation VLA model to international markets, while pursuing scaled production of humanoid robots.
Despite the strong operational progress, investors focused on the company’s near-term outlook. XPeng expects first-quarter deliveries of 61,000 to 66,000 vehicles, representing a year-over-year decline of roughly 30% to 35%.
Revenue is projected between RMB12.20 billion and RMB13.28 billion, down about 16% to 22.8% from a year earlier.