XPeng Beats Tesla on Margin, Aims for 40K Sales After $20B Revenue Jump
Just now, He Xiaopeng, Chairman and CEO of Xiaopeng Motors, revealed 5 key priorities for the company’s development over the next two years during a conference call. Here’s the detailed breakdown, along with the company’s latest financial performance and strategic goals:
01. Xiaopeng’s September Sales to “Steadily Exceed 40,000 Units”; EREV Models to Launch Domestically and Internationally in 2026
During Xiaopeng Motors’ financial results conference call this evening, He Xiaopeng provided a detailed update on the company’s key priorities for the second half of 2025 and plans for 2026. 2025 marks a “product-intensive year” for Xiaopeng, with extended-range electric vehicle (EREV) models set to enter the market at an accelerated pace.
1. EREV Version of Xiaopeng X9 to Enter Mass Production in Q4, Launch Globally in 2026
He Xiaopeng stated that Xiaopeng will launch its first Kunpeng Super Electric Vehicle model, the Xiaopeng X9, in the fourth quarter of 2025. Positioned in the 400,000 RMB price segment, the model will complete its domestic and overseas launches in 2026—marking Xiaopeng’s official entry into the “dual-energy (BEV + EREV) per model” product cycle.
According to He Xiaopeng, the Kunpeng Super Electric X9 will have an all-electric range of over 450 km and a combined range (electric + fuel) of over 1,500 km. More super electric vehicle models will be released subsequently, all targeting the longest all-electric range and fastest 5C ultra-fast charging capabilities among peer new energy vehicles.
He emphasized, “This means Xiaopeng will fully complete the upgrade of its new-generation technology platform for intelligence and dual-energy solutions in 2025, including pure-vision ADAS, AI large models, Turing AI chips, 5C ultra-fast charging cores, and the Kunpeng Super Electric system… to accelerate overall scale growth.”
2. September Sales to “Steadily Exceed 40,000 Units”; New P7 to Launch Next Week (300,000 RMB Segment)
The all-new Xiaopeng P7 will officially go on sale next week, with a pricing position in the 300,000 RMB segment, He Xiaopeng announced. With the delivery of the new P7, he stated, “Our goal is to achieve a steady monthly delivery volume exceeding 40,000 units starting from September.”
While He did not disclose pre-sale data, he noted, “The attention on the new P7 has far exceeded our expectations when we finalized this year’s plan at the end of last year. The number of preliminary orders has broken historical records for all previous models, including the MONA M03 and P7+, during the same period.” He added that the user profile of the new P7 has also expanded: male users account for a significant proportion, and P7 users are the youngest among all Xiaopeng model user groups.
3. L4-Capable Models to Enter Mass Production in 2026; Robotaxi Pilot Operations to Launch
He Xiaopeng also previewed the progress of L4-level autonomous driving models: Xiaopeng’s L4-capable vehicles will enter mass production in 2026, and pilot Robotaxi operations and services will begin in selected regions.
He said, “I believe there will be two types of cars in the future: one with L4 capabilities but requiring a human driver, and the other with L4 capabilities but no human driver. Of course, this will take several years to achieve, and it also requires policy and regulatory approval.”
He also highlighted the differences between Xiaopeng’s Robotaxi business and that of other companies:
- Pre-installed Mass Production: While L4 Robotaxis already exist on the market, they all use post-installed (retrofitted) systems. “Xiaopeng will be the first automaker in China to achieve L4-level computing power, software, and hardware capabilities through pre-installed systems for mass-produced Robotaxis.”
- No Regional Restrictions: Xiaopeng’s Robotaxis do not require laser radar scanning and high-precision mapping matching for each new area.
Xiaopeng aims to equip its Robotaxi models with new capabilities to significantly raise the growth ceiling of new vehicles—such as enabling intelligent assisted driving without navigation. In terms of operations and commercialization, Xiaopeng will operate the service independently during the initial testing phase and may seek more partners in the future.
He further stated that based on Xiaopeng’s Turing chips, VLA (Visual Language Assistant), and VLM (Vision-Language Model), the company is rapidly advancing toward a mass-producible version of initial L4 capabilities in the robotics field and is making preparations for mass production in the second half of 2026.
4. Current ADAS Performance Is “Neck-and-Neck”; All Ultra Versions to Be Equipped with 3 Turing Chips
He Xiaopeng commented, “Currently, the first echelon in assisted driving is neck-and-neck—some rely on computing power, while others rely on computing power + LiDAR.” Starting from the Xiaopeng G7 and P7 launched in Q3 2025, the Ultra versions of all Xiaopeng models will be equipped with three self-developed Turing AI chips, delivering an effective computing power of 2,250 TOPS—more than 3 times that of the latest flagship models of peers.
The Ultra versions of the Xiaopeng G7, P7, and subsequent models will deploy end-side VLA + VLM large models. Powered by Turing AI chips, the scale of on-vehicle models deployed by Xiaopeng will increase by an order of magnitude to billions of parameters, and the operating frame rate of the VLA model will be more than twice that of peers.
For owners of the G7 Ultra version, Xiaopeng will begin rolling out the initial version of the VLA model in the near future. The Ultra version’s model shares the same origin as the L4 Robotaxi system. He Xiaopeng’s goal is that within the next 18 months, Xiaopeng’s capabilities based on Turing chips + VLA models will be tens of times stronger than the mainstream urban ADAS capabilities in the industry, matching the safety, full-scenario adaptability, and user experience of human-driven L3-level autonomous driving.
5. Model Coverage Across 100,000–500,000 RMB Segment; Increased Focus on Vehicle Aesthetics
He Xiaopeng also addressed disputes regarding changes in the average selling price of new models. He stated that Xiaopeng’s vehicle prices generally range from 100,000 to 500,000 RMB. The upcoming all-new Xiaopeng P7 and Kunpeng Super Electric X9 are positioned in the 300,000 RMB and 400,000 RMB segments, respectively.
He added, “We focus on impressing consumers with aesthetics, technology, emotional appeal, and brand. When aesthetics are well-executed, it will drive excellent performance in terms of premium pricing and conversion rates.”
02. Over 47.5 Billion RMB in Cash Reserves; H1 Net Loss Narrowed to 1.14 Billion RMB
Xiaopeng’s confidence in announcing these goals stems from its strong financial performance in Q2 2025.
| Financial Indicator | Q2 2025 Performance | YoY Change | QoQ Change |
|---|---|---|---|
| Total Revenue | 18.27 billion RMB | +125.3% | +15.6% |
| Automotive Sales Revenue | 16.88 billion RMB | +147.6% | +17.5% |
| Net Loss | 480 million RMB | Narrowed by 62.8% | Narrowed by 28.1% |
| Gross Margin | 17.3% | +3.3 pts | +1.7 pts |
| Vehicle Gross Margin | 14.3% | +7.9 pts | +3.8 pts |
| R&D Expenses | 2.21 billion RMB | +50.4% | +11.4% |
Key highlights:
- Xiaopeng’s Q2 2025 gross margin reached 17.3%, a record high—surpassing Tesla’s 17.2% in the same period. Its vehicle gross margin also improved for 8 consecutive quarters.
- In H1 2025, Xiaopeng delivered over 197,000 vehicles, a 279.0% YoY increase—exceeding its total deliveries in 2024. Q2 deliveries alone hit 103,000 units, up 241.6% YoY.
- As of H1 2025, Xiaopeng’s cash, cash equivalents, restricted cash, short-term investments, and time deposits totaled 47.57 billion RMB—up from 45.28 billion RMB in Q1 2025 and 10.2 billion RMB more than the same period last year. This provides sufficient funds for the launch of EREV models, automotive intelligence, and AI R&D.
Gu Hongdi, Vice Chairman and Co-President of Xiaopeng Motors, said, “We are confident that we can not only accelerate scale growth but also continue to improve the company’s profitability, allowing us to maintain industry-leading R&D investment and continuously break through the boundaries of technological innovation.”
03. Q3 2025 Target: Nearly 120,000 Vehicle Sales; He Xiaopeng Outlines 4 Key Focus Areas
Building on its strong H1 financial performance, Xiaopeng has set clear sales and revenue targets for Q3 2025:
- Vehicle Deliveries: Expected to range from 113,000 to 118,000 units, a YoY increase of approximately 142.8% to 153.6%.
- Total Revenue: Projected to be between 19.6 billion RMB and 21.0 billion RMB, a YoY increase of approximately 94.0% to 107.9%.
From January to July 2025, Xiaopeng’s cumulative deliveries reached 233,900 units, a 270% YoY surge.
For future development, He Xiaopeng stated that Xiaopeng will comprehensively strengthen the company’s foundational capabilities and focus on four core areas: technology, organizational capabilities, commercialization capabilities, and globalization.
04. Conclusion: Xiaopeng Accelerates Strategic Transformation
While Xiaopeng Motors—currently in the midst of a strategic transformation—is gradually reaping the fruits of its efforts, balancing R&D investment and profitability in 2025 will be a critical challenge. To this end, the company is continuously adjusting its strategies.
As He Xiaopeng noted in a previous interview, “No one dares to slack off in this elimination competition. Currently, Xiaopeng still needs to keep running to ensure it does not fall behind.”