XPeng Reports First Quarterly Profit in Q4 2025

XPeng Inc., the Chinese electric vehicle maker, reported its first quarterly profit in the fourth quarter of 2025, marking a significant milestone amid robust annual growth, though shares fell nearly 5 percent in early trading on Friday due to a weaker outlook for the first quarter of 2026.

The company posted a net profit of 383 million yuan (about $54.8 million) for the October-to-December period, compared with a loss of 1.33 billion yuan a year earlier. Total revenue reached 22.25 billion yuan, up 38.2 percent from the same quarter in 2024 and 9.2 percent sequentially from the third quarter. Vehicle sales revenue contributed 19.07 billion yuan, while services and other revenue surged 121.9 percent year over year to 3.18 billion yuan, driven by research and development services for Volkswagen Group, parts sales, and carbon credit trading.

Gross margin improved to 21.3 percent, up from 14.4 percent a year earlier, with vehicle margin rising to 13 percent from 10 percent, reflecting cost reductions and a better product mix. Operating loss narrowed to 40 million yuan from 1.56 billion yuan in the prior year's fourth quarter. For the full year, XPeng delivered 429,445 vehicles, a...