XPeng, Inc. Q4 FY2024 earnings call

• In Q4 2024, XPeng achieved a record 91,507 vehicle deliveries, six consecutive quarters of improving vehicle margins, and over RMB4 billion in free cash flow in the second half of the year.
• Topped monthly deliveries among China's emerging EV companies for two consecutive months in 2025.
• Developed a cloud-based foundational model for autonomous driving with tens of billions of parameters, leveraging over 100 million kilometers of real driving data.
• Starting from P7+, all new X9 models including the 2025 G6 and G9 come with pure vision-based AI smart driving as standard. The Mona M03 Max to launch in May will lower the entry barrier for urban AI smart driving to the RMB150,000 range.
• Plan to launch new models or updated versions every quarter starting 2025, with new G6 deliveries starting March 21. Overseas sales exceeded 20,000 units in 2024; aim to double sales and set up over 300 sales and service stores globally in 2025, plus a new overseas R&D center.

In the fourth quarter of 2024, total revenues were RMB16.11 billion, an increase of 23.4% year-over-year and 59.4% quarter-over-quarter. Revenues from vehicle sales were RMB14.67 billion, up 20% year-over-year and 66.8% quarter-over-quarter. Revenues from services and others were RMB1.43 billion, up 74.4% year-over-year and 9.7% quarter-over-quarter. Gross margin was 14.4% for the quarter, vehicle margin was 10%. R&D expenses were RMB2.01 billion, up 53.4% year-over-year and 22.9% quarter-over-quarter. SG&A expenses were RMB2.28 billion, up 17.5% year-over-year and 39.3% quarter-over-quarter. Loss from operations was RMB1.56 billion, net loss was RMB1.33 billion. As of December 31, 2024, cash and cash equivalents, restricted cash, short-term investments and time deposits totaled RMB42 billion.

• Anticipates Q1 2025 vehicle deliveries between 91,000 and 93,000 units, representing a year-over-year increase of 317% to 326.2%.
• Forecasts total revenue for Q1 2025 to fall between RMB15 billion and RMB15.7 billion, a year-over-year growth of 129% to 139%.
• Expect vehicle margins to improve further in 2025, moving towards profitability in the fourth quarter of 2025.

Forward-looking statements involve inherent risks and uncertainties. The company's results may be materially different from views expressed today. Further information regarding risks and uncertainties is included in the company's public filings with the U.S. Securities and Exchange Commission.

Q: About autonomous driving, whether it will widen gaps between leaders and laggers?

A: He Xiaopeng said advancements in AI and full stack self-development will create gaps, with XPeng having early vision and investment, and full stack capability across domains.

Q: Non-vehicle applications synergy and non-vehicle product value contribution?

A: He Xiaopeng said humanoid robots and AI vehicles have synergies, with mass production of humanoid robots planned by 2026.

Q: First quarter gross margin guidance and DiDi related transaction?

A: James Wu said vehicle margin improved in Q4, aiming for double-digit margins, and DiDi related liability released due to focus on 2C.

Q: Overseas market factory cooperation and autonomous driving MPI goal?

A: Brian Gu discussed overseas expansion plans, and He Xiaopeng talked about MPI as a milestone for L3 capability.

Q: Long-term business drivers scope by 2030 and European policy impact?

A: He Xiaopeng mentioned sales split target, and Brian Gu discussed overseas R&D and VW partnership opportunities.