Xpeng Achieves First Profit, Margins Surge in Q4

This performance contrasts sharply with a net loss of 1.33 billion yuan in the same period of 2024. The company reported total revenue of 22.25 billion yuan, a 38.2% increase from the prior year, with vehicle sales revenue rising 30.0% year-on-year to 19.07 billion yuan.

Services and other revenues surged 121.9% to 3.18 billion yuan, primarily from technical R&D services provided to an unnamed car manufacturer, apparently Volkswagen. Despite narrowing its GAAP operating loss to 40 million yuan, Xpeng issued soft guidance for the first quarter of 2026, projecting vehicle deliveries between 61,000 and 66,000 units, a year-on-year decline of 29.79% to 35.11%, and total revenue between 12.2 billion yuan and 13.28 billion yuan.

The company also adjusted its P7 sedan strategy, lowering the starting price by 16,000 yuan and offering tiered AI chip options to boost declining sales, which plunged to 681 units in February.