XPeng Inc. Q3 FY2025 earnings call

• Record vehicle deliveries in Q3 2025: 116,007 units, a 149% year-over-year increase. The all-new XPeng P7 boosted monthly deliveries. - Gross margin exceeded 20% for the first time, and net loss was reduced; goal to achieve breakeven in Q4. - Focus on physical AI: Developing VLA 2.0 model, planning to open source it, and aiming for mass production of Robotaxi and humanoid robot. - Launched XPeng X9 Super Extended-Range EV with strong preorders. Plan to introduce 3 super extended-range products in Q1 2026. - Overseas expansion: Monthly overseas deliveries exceeded 5,000 units in September, 56 new overseas stores opened, and localized production in Austria and Indonesia commenced. - VLA 2.0 model to enhance intelligent driving, with Volkswagen as the initial launch customer. - Plan to launch 3 Robotaxi models in 2026, open source Robotaxi SDK, and begin pilot operations in China. - Unveiled humanoid robot IRON, aiming for mass production by end of 2026 and opening its SDK to global developers.

Total revenues for the third quarter of 2025 were RMB 20.38 billion, an increase of 101.8% year-over-year. Revenue from vehicle sales was RMB 18.05 billion, up 105.3% year-over-year. Revenue from services and others was RMB 2.33 billion, an increase of 78.1% year-over-year. Gross margin was 20.1% for the quarter, compared with 15.3% in the same period of 2024. Vehicle margin was 13.1%, up from 8.6% in the same period of 2024. As of September 30, 2025, cash and cash equivalents, restricted cash, short-term investments, and time deposits totaled RMB 48.33 billion.

• Anticipates Q4 deliveries between 125,000 and 132,000 units, a year-over-year growth of 36.6% to 44.3%. - Projects Q4 revenue to be roughly between RMB 21.5 billion to RMB 23 billion, up 33.5% to 42.8% from the previous year. - Plan to introduce 3 new overseas models in 2026. - Aim to deploy VLA 2.0 model across the entire Ultra lineup in early 2026. - Plan to launch 3 Robotaxi models in 2026 and begin pilot operations in China. - Target to mass produce humanoid robots by the end of 2026.

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

Q: About physical AI competitive advantage.

A: XPeng's physical AI has a different DNA, focusing on full-stack technology capability and custom integration, with cars seen as a new format of robotics.

Q: Revenue from Volkswagen collaboration.

A: Revenue from tech collaboration expected to be comparable in Q4, and Turing SoC revenue will ramp up with the joint vehicle series production start in early 2026.

Q: Humanoid robot strategy.

A: XPeng's robot has a human-like design, with a tech road map focusing on integration, aiming for mass production by the end of 2026 and opening its SDK to partners.

Q: Robotaxi commercialization.

A: Plan to launch 3 Robotaxi models in 2026, work with Amap and other partners, and focus on ecosystem collaboration.

Q: Revenue breakdown for new businesses.

A: No numerical guidance yet, but the long-term potential is immense.

Q: EREV model growth and robot affordability.

A: EREV growth will be seen in Q4/Q1 next year, and robot pricing is aimed to be affordable similar to cars with a high software component.

Q: Overseas production and smart driving for sales.

A: Local production is ramping up in Austria and Indonesia, and plans to leverage smart driving for international sales growth.