XPeng Achieves First-Ever Quarterly Profit

[Financial Milestone] XPeng reported a net profit of RMB 383 million in Q4 2025, marking its first-ever quarterly profit, with gross margin rising to 21.3%.

Core Developments: Technology Monetization and Policy Support Drive Profitability

This profitability was not solely driven by vehicle sales but resulted from a combination of technology licensing revenue, government subsidies, and cost optimization. Chairman He Xiaopeng described it as a "historic turning point in the application of physical AI" and emphasized the company's accelerated evolution from L2+ toward L4 autonomous driving.

Key Metrics: Record Highs in Deliveries and Cash Reserves

In 2025, XPeng delivered 429,400 vehicles (up 125.9% year-over-year), generated revenue of RMB 76.72 billion (up 87.7% year-over-year), and held cash reserves of RMB 47.66 billion.

Industry Impact: New EV Players Enter the Era of Capability Realization

Following NIO, Leapmotor, and Li Auto, XPeng’s profitability signals that China’s smart EV makers are transitioning from a phase of "cash-burning expansion" to a new stage centered on technology monetization and commercial sustainability.