Xpeng Motors, which has been established for nearly 11 years, has seen a glimmer of profitability.
In the "bloody" environment where the new energy vehicle market is mired in price wars and technological iterations are accelerating, Xpeng Motors has delivered a report that its revenue will increase by 33.2% in 2024, its deliveries will exceed 190,000 vehicles, and its full-year net loss will still reach 5.79 billion yuan.
February 18, 2025, Shanghai, Xpeng Motors Flagship Experience Center.
Automobile gross profit margin turns from negative to positive
According to the latest financial report released by Xpeng Motors recently, in 2024, Xpeng Motors' total annual revenue will reach 40.87 billion yuan, a year-on-year increase of 33.2%, of which automobile sales revenue will account for 87.7% and reach 35.83 billion yuan, a year-on-year increase of 27.9%. Service and other revenue surged 89% year-on-year to 5.04 billion yuan, mainly due to the cooperation with Volkswagen in platform and software technology R&D services, and the related revenue profit margin increased to 57.2%.
The full-year gross profit margin jumped from 1.5% in 2023 to 14.3%, and the automobile gross profit margin turned from negative to positive to 8.3%, improving for six consecutive quarters.
Although the full-year net loss was as high as 5.79 billion yuan, it narrowed by 44% year-on-year, and cash reserves reached 41.96 billion yuan, providing sufficient "ammunition" for subsequent research and development and market expansion.
He Xiaopeng emphasized in the earnings call that "through technology cost reduction, economies of scale and improved operational capabilities, we expect the gross profit margin of automobiles to continue to improve and achieve profitability in the fourth quarter of 2025." This goal is based on sales expectations - the 2025 target will double to more than 380,000 vehicles, and the first quarter delivery volume has exceeded 90,000 vehicles.
Betting on AI travel ecosystem
To support the surge in sales, Xiaopeng accelerated the expansion of its product matrix.
According to the plan, Xpeng will launch pure electric and Kunpeng super electric products in the second half of the year to cover the needs of extended range. Among them, the upcoming MONA M03 Max will bring the urban intelligent driving function down to the 150,000 yuan level.
On the technical level, Xiaopeng is deeply integrating AI into its strategic core. He Xiaopeng predicted that 2025 will be the "first year of AI application", and L3 intelligent driving software capabilities will be achieved in the second half of the year, and L4 low-speed unmanned driving models will be mass-produced in 2026.
In terms of ecological layout, Xiaopeng will form three growth curves through overseas markets, AI cars, and embodied robots. The split flying car "Land Aircraft Carrier" is planned to be mass-produced in 2026; the second-generation humanoid robot IRON has been used in factories, and the goal is to achieve L3 industrial scene capabilities in 2026. He Xiaopeng's outlook: "In the future, unmanned vehicles in cities, cross-city flying cars and factory humanoid robots will jointly build an AI travel ecosystem."
However, Xpeng Motors still needs to face the current situation of continued losses and gross profit margin still lower than that of rivals such as Ideal (19.8%) and Xiaomi (18.5%).
