This Chinese EV Brand Just Reported Its First-Ever Quarterly Profits

On Friday, the Chinese electric vehicle company XPeng reported its first-ever quarterly profit. XPeng currently makes a variety of EV models, but has long had ambitions to move past car sales into robotaxis and other autonomous vehicles, much like Tesla (TSLA).

In the fourth quarter, XPeng reported a net profit of $54.8 million — a far cry from its $1.33 billion loss in the prior year. Analysts had been expecting XPeng to trim quarterly losses to just $2.8 million, according to FactSet.

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That good news was overshadowed by a weak 2026 outlook. XPeng said it expected total vehicle deliveries in the first quarter to be between 61,000 and 66,000 cars, which would be a decline of between 29.8% and 35.1%. First quarter revenue was projected to fall between 16% and 22.8% to a range of $1.77 billion and $1.92 billion.

U.S.-traded shares dropped 4% before the market opened on Friday.

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XPeng Earnings

Quarterly revenue rose 38.2% to $3.18 billion, while diluted earnings per share clocked in at 6 cents apiece. A year earlier, XPeng had reported losses of 19 cents a share. Analysts had been expecting revenue of $3.11 billion and EPS of zero cents per share.

Total vehicle deliveries in 2025 rose 126% for a total of 429,445 cars. However, car sales this year got off to a slow start. In the first two months of 2026, XPeng deliveries fell 42% vs. the year before.

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Revenue from vehicle sales amounted to $2.73 billion in the quarter, a 30% increase. XPeng attributed the sales growth mostly to higher deliveries in 2025.

U.S.-listed shares of Xpeng have struggled this year, after having had a blockbuster 2025. Year-to-date the stock is down close to 6%. Meanwhile, last year it had risen more than 70%. Heading into Friday’s earnings the stock had been down about 4% for the week.

XPeng’s Growth Plans

Like many of its Chinese competitors, XPeng is heavily focused on international expansion. In the past, it has stated it aims to have more than 50% of its total vehicle revenue come from outside of China by 2035.

The company has also been clear that it intends to develop self-driving technology it hopes will power a slew of autonomous vehicles in the future, including humanoid robots, robotaxis, and even a flying car.

“Our goal is not only to grow our global market share of AI-defined vehicles and bridge the gap from Level 2+ assisted driving to Level 4 autonomous driving, but also to bring our second-generation VLA model to international markets and achieve scale production of advanced humanoid robots,” CEO Xiaopeng He said in a statement.

Earlier this month, XPeng began testing its robotaxis in Guangzhou, where it is based. The robotaxis are powered by the companies proprietary VLA 2.0 system and Turing AI chips. If the tests should go well, it would pave the way for XPeng to begin operating its own robotaxi service.

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