If 2024 was XPeng Inc.'s year of "fighting for survival," then the first half of 2025 has finally brought the company back to center stage. The latest semi-annual report has put this once-criticized new energy vehicle manufacturer back in the spotlight.

The company reported revenue of 34.08 billion yuan, doubling year-over-year; gross margins climbed to 17.3%, even surpassing Tesla Motors in the second quarter; deliveries reached 197,000 units, exceeding last year's full-year total in just six months. Most encouraging for the market was the narrowed net loss of 1.14 billion yuan, bringing the company within striking distance of actual profitability.

Behind these numbers lies not just numerical gains, but the story of a new energy brand learning to balance idealism with reality in brutal market competition, ultimately finding its growth rhythm. Chairman He Xiaopeng confidently stated during the earnings call that "the fourth quarter will enter a new phase of profitable self-sustaining cash generation."

**Finding Premium Pricing After Volume-for-Price Strategy**

XPeng Inc.'s surge in first-half deliveries was primarily driven by two high-volume models: the MONA M03 and P7+. According to China Passenger Car Association data, the P7+ accounted for over 20% of XPeng Inc.'s sales in the first six months of 2025, while the MONA M03 entered the mass market with highly competitive pricing, rapidly driving scale effects but temporarily dragging down average selling prices.

In the first quarter, XPeng Inc.'s revenue per vehicle dropped to 153,000 yuan. However, the second quarter saw recovery to 164,000 yuan as higher-margin models like the refreshed G6 and G9 ramped up production and deliveries, significantly optimizing the product mix. The increased proportion of high-margin vehicles directly drove automotive gross margins to 14.3%.

This indicates that after the initial "volume-for-price" phase, XPeng Inc. is regaining pricing control through product iteration and configuration optimization. He Xiaopeng specifically emphasized that the upcoming new P7 (positioned at 300,000 yuan level) and the extended-range X9 (positioned at 400,000 yuan level) entering production in Q4 will further drive brand elevation.

**Gross Margins Surpassing Tesla Motors: Sustainable Trend or Coincidence?**

The continued improvement in gross margins is undoubtedly the most striking highlight of this financial report. The overall gross margin of 17.3% has improved for eight consecutive quarters, even slightly leading Tesla Motors. While this reflects technical improvements, increased platform standardization, and supply chain cost optimization, the deeper reason is that XPeng Inc. has finally found the balance between high R&D investment and technology commercialization.

In the first half of 2025, XPeng Inc.'s R&D expenses reached 4.19 billion yuan, up 48.6% year-over-year, mainly concentrated in core technology areas including pure vision autonomous driving, AI large models, Turing chips, and 5C super-fast charging. He Xiaopeng stated that "current first-tier assisted driving capabilities are comparable," while XPeng Inc. aims to achieve "tens of times improvement over mainstream urban assisted driving capabilities" within 18 months through computational power advantages and model upgrades.

This technology layout serves not only current assisted driving experiences but also paves the way for L4 vehicle mass production and Robotaxi operations in 2026. XPeng Inc. emphasizes that its Robotaxi will be China's first "pre-installed mass-production L4-capable" vehicle that doesn't rely on high-definition maps, offering unlimited regional operation potential.

**Profitability in Sight, But the Battle Has Just Begun**

Despite continued losses, the 1.14 billion yuan net loss represents a 56.98% improvement compared to the same period last year. Additionally, Q2 sales and administrative expense ratios dropped to 11.9%, down 7.5 percentage points year-over-year, reflecting that this once "heavy R&D, light sales" company is learning more refined cost control.

Cash reserves increased to 47.57 billion yuan, providing XPeng Inc. with sufficient strategic breathing room. In an industry facing widespread funding pressures, nearly 50 billion yuan in cash not only ensures continued R&D investment but also prepares adequate ammunition for potential price wars and technology iterations. Notably, XPeng Inc.'s Q2 free cash flow turned positive by over 2 billion yuan, indicating that its core business has preliminary cash generation capabilities, reducing absolute dependence on financing.

The path to profitability is clear. Short-term, Q3 is expected to deliver 113,000-118,000 units, with monthly deliveries steadily exceeding 40,000 units from September, further reducing costs through scale effects. Medium-term, the launch of extended-range X9 will open "dual-energy" market space, covering user groups beyond pure electric reach and enhancing premium capabilities. Long-term, technical cooperation with Volkswagen (electronic and electrical architecture licensing) has become a stable profit source, potentially expanding to fuel and hybrid vehicles as a "light-asset" revenue model.

However, true corporate tests extend far beyond financial numbers. First, SUV product lines (G6, G9) still represent a low sales proportion, creating product structure imbalance in China's SUV-preferring market. Second, while overseas markets have entered over 40 countries, only 18,000 units were delivered in the first half, requiring accelerated globalization. Additionally, industry price wars show no signs of abating, with competitors like Xiaomi, Zeekr, and Leapmotor all setting profitability targets, intensifying competition.

XPeng Inc.'s first half of 2025 represents a quiet but highly convincing transformation. It's no longer merely a company telling future technology stories, but an enterprise capable of efficient manufacturing, precise sales, cost control, and approaching profitability. Every highlighted figure in its financial report reflects strategic adjustments, technology accumulation, and execution efficiency improvements.

If 2024 was XPeng Inc.'s "survival year," then 2025 is its "breakthrough year." As technical advantages gradually convert to product and financial advantages, XPeng Inc. may indeed achieve its desired "scale leadership + self-sustaining cash generation" new phase. The industry's final circle is contracting, and XPeng Inc. has secured its ticket to the next round of competition.