XPeng, one of the leaders of China’s EV revolution, has announced financial results that mark a historic milestone for the company. For the first time since its founding, the Guangzhou-based manufacturer posted a quarterly profit, joining rivals such as NIO and Li Auto in the club of profitable Chinese EV startups. This success comes despite increasingly intense competition on the domestic market and signals the maturing of not only the company, but also the entire sector.
The past year was extremely significant for XPeng, which recorded consecutive quarters of strong sales growth and boldly stepped into the fields of robotaxis and humanoid robots. With this, the company clearly shows its ambition to transform into what it calls a “physical AI company”.
Financial injection and record margins
According to an official report, XPeng made a net profit of 383.2 million yuan in the fourth quarter of 2025, equivalent to 55.5 million US dollars. This is a dramatic improvement compared to the same period last year, when a net loss of 1.33 billion yuan was recorded. The result significantly exceeded the expectations of analysts, who predicted a loss of around 200 million yuan. Revenue rose 38 percent to 22.25 billion yuan, also beating market forecasts.
During this period, the company delivered a record 116,249 vehicles. One of the key indicators of success is the gross margin, which rose to an impressive 21.3 percent, compared to 14.4 percent a year earlier. This jump is attributed to continuous cost reduction and optimization of the production mix, but also to significant revenues from technical services, primarily derived from the strategic partnership with Volkswagen. Looking at the entire year 2025, XPeng significantly reduced its net loss to 1.14 billion yuan, while total revenues jumped by as much as 88 percent, reaching 76.72 billion yuan.
A strategic turn towards artificial intelligence
In addition to financial indicators, XPeng is increasingly profiled as a technological leader. They recently introduced their advanced autonomous driving system VLA 2.0, powered by their own chips, with a plan for global deployment by 2027. The company also aims to launch three models of robotaxis this year, with testing beginning in China at the end of 2026. Their vision of “physical artificial intelligence” includes the development of humanoid robots, for which they have already begun mass production with the construction of a facility in Guangzhou.
With XPeng entering the profitability zone, now all three of China’s leading EV startups (including NIO and Li Auto) have proven that they can operate with a positive result. This marks a new phase in the Chinese market, where the battle for customers is shifting from a purely “price war” to a competition in technological innovation, such as 800V fast charging architecture and advanced AI driving assistance systems.
Despite a strong finish to the year, the company issued a cautious forecast for the first quarter of 2026, expecting to deliver between 61,000 and 66,000 vehicles, reflecting a seasonal slowdown in the market.