Chinese electric vehicle (EV) manufacturer XPeng is making waves in the EV industry, forecasting second-quarter revenue between 17.5 billion and 18.7 billion yuan ($2.47 billion to $2.64 billion), surpassing Wall Street expectations of 16.85 billion yuan, according to LSEG data. This optimistic outlook, announced on May 21, 2025, is driven by surging demand for XPeng’s lower-priced EVs and a significant uptick in vehicle deliveries, positioning the company as a key player in China’s competitive EV market.

Strong Delivery Numbers Fuel Growth

XPeng’s performance in 2025 has been impressive, with the company reporting 94,008 EV deliveries in the first quarter—a 330.8% increase compared to the same period in 2024. The Guangzhou-based automaker expects to deliver between 102,000 and 108,000 vehicles in Q2, marking a 237.7% to 257.5% jump year-over-year.

“Despite seasonality for auto sales, our quarterly deliveries hit a new historical high, making us the top-selling automaker among emerging EV companies,” said CEO Xiao Peng He, as reported by Reuters.

This growth reflects XPeng’s strategic focus on affordable models, which resonate with cost-conscious consumers in China’s crowded EV landscape.

New Models and Tech Advancements

XPeng is expanding its lineup to capture more market share. In August 2024, the company launched the MONA M03, a mid-sized sedan priced competitively against BYD’s Seagull and Dolphin, as well as Tesla’s higher-end Model 3. Additionally, last month, XPeng unveiled the X9 minivan, starting at 359,800 yuan ($49,231), which features advanced autonomous driving systems.

The company is also pushing toward mass production of vehicles with Level 3 autonomous driving capabilities by the end of 2025—a significant leap from the Level 2 systems currently in wide use. This upgrade allows for more hands-off driving under specific conditions, potentially enhancing user safety and convenience while keeping XPeng ahead in the tech race.

Xpeng Boosts Q2 Revenue Forecast With Record Ev Deliveries In 2025

Financial Progress Amid Challenges

Financially, XPeng is showing signs of improvement. The company’s gross margin for Q1 2025 rose to 15.6%, up from 12.9% a year earlier, indicating better cost management despite a narrow overall loss. U.S.-listed shares of XPeng also climbed 6.3% in premarket trading following the revenue forecast, reflecting investor confidence.

However, XPeng remains one of the few Chinese automakers yet to turn a profit, a challenge in a market known for its razor-thin margins and intense competition from giants like BYD and Tesla. The company’s focus on lower-priced EVs could help drive volume, but it may also pressure profitability in the short term.

Industry Trends and User Benefits

XPeng’s growth aligns with broader trends in the EV sector, where affordability and advanced tech are key differentiators. For EV owners and enthusiasts, XPeng’s push toward Level 3 autonomy could mean safer, more relaxed drives, especially on highways or in traffic. The MONA M03 and X9 minivan offer practical options for families and urban drivers, with the X9’s 7-seat capacity and autonomous features catering to those needing space and innovation.

Economically, XPeng’s competitive pricing—around $49,231 for the X9—makes EVs more accessible, potentially accelerating adoption in markets beyond China, like Hong Kong, where the company showcased its lineup by the Victoria Harbour in April 2025.

Vooruitblik

XPeng’s record deliveries and tech advancements signal a promising trajectory, but the road to profitability remains a hurdle. As the company scales production and refines its autonomous driving systems, it could redefine the EV experience for users while challenging established players. For now, XPeng’s 2025 performance underscores its growing influence in the global EV market, with implications for both industry dynamics and consumer expectations.