XPENG reports YoY, QoQ growth in Q3 2024 revenue, gross margin

Shanghai (Gasgoo)- XPeng Inc. ("XPENG"), a leading Chinese smart electric vehicle (EV) manufacturer listed on the NYSE and HKEX, has released its unaudited financial results for the third quarter (Q3) of 2024, showcasing robust growth across key performance metrics, including revenue and gross margin.

The company reported total revenues of 10.10 billion yuan (US$1.44 billion) for the quarter, marking an 18.4% increase from the same period last year and a 24.5% rise from the second quarter of 2024. Vehicle sales revenues reached 8.8 billion yuan (US$1.25 billion) in the same period, up 12.1% year-over-year and 29% quarter-over-quarter, driven by a surge in deliveries. XPENG delivered 46,533 vehicles during Q3, a 16.3% rise from the 40,008 units delivered in the corresponding period of 2023.

XPENG P7+; photo credit: XPENG

The company's gross margin improved significantly, reaching 15.3% in Q3 2024, compared to negative 2.7% in Q3 2023 and 14% in the previous quarter. The vehicle margin climbed to 8.6%, a marked improvement from negative 6.1% a year earlier and 6.4% in the second quarter this year. These gains were attributed to cost reductions and a shift towards a more profitable product mix.

Research and development expenses increased to 1.63 billion yuan (US$0.23 billion) in Q3 2024, a 25.1% year-over-year rise and an 11.3% quarter-over-quarter increase. The higher R&D spending reflects XPENG's intensified focus on expanding its product portfolio, including the development of new vehicle models to drive future growth.

The net loss for the quarter narrowed to 1.81 billion yuan (US$0.26 billion) from 3.89 billion yuan in the same period of 2023, though it increased from 1.28 billion yuan in the previous quarter. On a non-GAAP basis, excluding share-based compensation and other adjustments, the net loss stood at 1.53 billion yuan (US$0.22 billion) in the period, compared to 2.79 billion yuan a year earlier and 1.22 billion yuan in the prior quarter.

As of September 30, 2024, XPENG held cash and cash equivalents, restricted cash, short-term investments, and time deposits totaling 35.75 billion yuan (US$5.09 billion), slightly down from 36.48 billion yuan a year ago and 37.33 billion yuan at the end of the second quarter.

The company also expanded its physical presence, operating 639 stores across 206 cities and growing its self-operated charging station network to 1,557 stations, including 654 XPENG S4 ultra-fast charging stations, as of September 2024.

Looking ahead, XPENG projects vehicle deliveries between 87,000 units and 91,000 units for the fourth quarter, representing a year-over-year increase of 44.6% to 51.3%. Total revenues for the same period are expected to range from 15.3 billion yuan to 16.2 billion yuan, reflecting a year-over-year increase of 17.2% to 24.1%.