XPENG Sees 60.2% YoY Revenue Surge in Q2 2024

China’s NEV new force XPENG announced its unaudited Q2 2024 financial results on August 20, Beijing time. By checking the financial figures, we see a strong increase in both revenues and vehicle deliveries.

• As of Q2 2024, XPENG total revenues: RMB8.11 billion (US$1.12 billion), up 60.2% yoy and up 23.9% mom;
• As of Q2 2024, XPENG’s gross margin: 14% (the gross margin of Q2 2023: -3.9%);
• As of Q2 2024, XPENG’s net loss: RMB1.28 billion (US$0.18 billion) (the net loss of Q2 2023: RMB2.8 billion) .

How does XPENG make such achievement in financial figures? After analyzing the detailed information XPENG has shared on the investor call, Autocango summarized the following three main keys.

1)     Vehicle Sales Growth

According to XPENG, the revenue growth was due to the growing vehicle sales. XPENG has delivered 30,207 units in Q2 2024, gaining a 30.2% year-on-year increase. Thanks to this, XPENG received RMB6.82 billion (US$0.94 billion) in Q2 2024 a year-on-year increase of 54.1% and a month-over-month rise of 23%.

2)     Partnership with Volkswagen

From the financial results, XPENG received RMB1.29 billion (US$0.18 billion) from its cooperation with Volkswagen in Q2, marking a month-over-month rise of 28.8%. It means that XPENG has already begun to monetize its technology.

3)     Investment in Innovation

Innovation is ALWAYS a key to growth. In Q2 2024, XPPENG spent RMB1.47 billion (US$0.2 billion) on research and development (R&D), an increase of 7.3%, compared to the R&D expenses in the same time last year, and 8.6% rise, compared to the R&D expenses in Q1 2024. Actually, Since the beginning of 2024, XPENG has been placing greater focus on intelligent driving with end-to-end large-scale technology. On its AI Intelligent Driving Technology Conference held at the end of this July, XPENG revealed its AI-based Tianji XOS 5.2.0 system, demonstrating that it had already established the capability of solving driving problems with end-to-end AI data.

Positive Outlook for Q3 2024

Looking forward, XPENG set a positive goal, the company is expecting total revenues to be between RMB9.1 billion and RMB9.8 billion in Q3 2024, with the target of delivering 41,000 to 45,000 units in Q3 2024.