XPeng conference call: Achieving profitability in Q4 this year, Turing chip ramping up in Q3, humanoid robot to be launched in 2026

In the first quarter of 2025, XPeng delivered an impressive performance report, achieving "the highest sales among new forces" in both domestic and international markets, and making substantial breakthroughs in the integration of intelligence and AI.

On May 21, XPeng held a Q1 earnings call, where Chairman He Xiaopeng discussed everything from self-developed chips and intelligent driving to humanoid robots, stating, "Our growth potential has just begun to be released."

He Xiaopeng revealed that the self-developed Turing chip successfully completed its first tape-out in 2024, and large-scale vehicle installations are expected in Q3 of this year. The company aims to push for L3 and L4 level autonomous driving and plans to fully implement the "physical world base large model" by 2025, with humanoid robots targeting industrial and commercial scenarios set to launch in 2026.

In terms of sales, XPeng expects Q2 2025 deliveries to reach 102,000 to 108,000 units, with a year-on-year growth potentially exceeding 250%. The company aims to achieve profitability in Q4 of this year and move towards positive annual free cash flow, supporting the implementation of its AI strategy with strong self-sustaining capabilities. XPeng is not only aiming for sales to triple but also to support the future new species matrix with self-developed technology.

After the earnings report, XPeng's stock price rose over 16% at one point, before giving back some gains.

Q1 Sales Surge Against the Trend, Gross Margin Hits New High

In the face of a traditional automotive market's first-quarter off-season, XPeng broke through the trend, achieving a delivery volume of 94,008 units, a year-on-year increase of 331%, setting a new historical high for quarterly deliveries. Moreover, XPeng secured the top sales position among new forces in both domestic and international dimensions.

In terms of profitability quality, XPeng's overall gross margin reached 15.6%, the highest level in history, with a significant reduction in net losses quarter-on-quarter, while free cash flow exceeded 3 billion yuan in Q1, significantly enhancing financial stability.

He Xiaopeng attributed this achievement to the continuous improvement of XPeng's systematic comprehensive capabilities in "organization, product, marketing, technology, and operations." He particularly mentioned XPeng's commitment to an AI-driven technology approach and a steady progress strategy in operations.

There were also many breakthroughs in products:

The MONA M03 has delivered over 100,000 units in 8 months since its launch, becoming the sales champion among A-class pure electric sedans;

The P7+ has completed its 50,000th unit off the line in just 5 months since its launch;

The 2025 models G6 and G9 saw over 7,500 units delivered in their first month in April.

Monthly delivery volume has maintained above 30,000 units for six consecutive months.

Comprehensive AI Transformation Begins to Show Results

Notably, XPeng's strategic focus has fully shifted towards self-developing and implementing AI technology stacks. He Xiaopeng stated that the company's AI transformation has achieved preliminary success across the entire technology stack, with breakthroughs in several areas, including AI chassis, Turing AI-assisted driving, intelligent cockpit, Turing chips, embodied intelligent robots, and enterprise-level AI productivity tools.

He also specifically pointed out: "In 2026, some AI capabilities will achieve generational leadership in the industry." He Xiaopeng summarized that XPeng is building an AI closed-loop system from "cars to humanoid robots" based on Turing chips and large models. XPeng Motors will be the first to cross three growth curves, achieving sustainable high growth. These three growth curves are self-research and implementation of the AI technology stack, globalization, and humanoid robots.

Humanoid Robots Are Coming! Official Launch in 2026

In addition to making cars, XPeng is also going to make robots. Humanoid robots will become the third growth curve for XPeng Motors.

He Xiaopeng announced that XPeng Motors is advancing the research and development of humanoid robots aimed at industrial and commercial scenarios, with the goal of launching them by 2026. The robots will rapidly evolve driven by data from mass production scenarios.

He said, "The fifth-generation robots will be equipped with our self-developed Turing chips, achieving super strong computing power on the edge."

Turing Chips Achieve "Successful Tape-Out on First Attempt," Large-Scale Production in Q3

Since 2021, XPeng has firmly embarked on the path of self-research in chips. The self-developed Turing chip completed its first tape-out in 2024 successfully, reportedly with computing power 3 to 7 times that of current mainstream automotive AI chips, and progress is going smoothly.

He Xiaopeng revealed that models have already entered the production phase in the second quarter, and the third quarter will see a larger scale rollout of models equipped with Turing chips; this chip will also be deployed in humanoid robots, meaning XPeng will connect the entire closed-loop from "AI cars" to "AI robots."

But more importantly, XPeng is not just making chips; it has built an integrated full-stack architecture of chips + models + software + compilers, which can maximize the synergistic effect of models and chips.

He Xiaopeng stated that in his view, the crown of AI technology in the physical world lies in chips, models, data, infrastructure, etc.:

"XPeng insists on the research and development of hardcore chip technology, which will bring the largest computing power at the vehicle end and edge models in the industry."

Expected Q2 Deliveries to Triple Year-on-Year

XPeng expects Q2 2025 deliveries to be between 102,000 and 108,000 units, a year-on-year increase of up to 237.7% to 257.5%. Q2 revenue is expected to be between 17.5 billion and 18.7 billion RMB, a year-on-year increase of 115.7% to 130.5%.

In addition, He Xiaopeng expressed confidence that XPeng Motors' strong growth momentum will continue in 2025. XPeng plans to complete annual upgrades or configuration enhancements for five models in the second quarter and will launch two major new cars in the third quarter, achieving a significant increase in deliveries.

New Product Launches: G7, P7 Refresh, "Kunpeng" Strikes

He Xiaopeng revealed during the conference call that XPeng will welcome a new product cycle in the second half of the year:

In June, the G7 model will be pre-released to strengthen the smart sedan matrix;

In the third quarter, a new generation P7 will be launched, targeting the luxury sports sedan market at the 300,000 RMB level;

In the fourth quarter, the "Kunpeng Super Electric Vehicle" will enter mass production and achieve technological innovation of "one vehicle with dual capabilities," which is expected to become a sales explosion point for reaching a broader audience.

He Xiaopeng stated, "I believe the launch of the Kunpeng Super Electric will help us reach a wider customer base in both domestic and overseas markets, bringing significant sales growth potential."

Q4 Achieves Profitability, Moving Towards Free Cash Flow

Driven by both sales and technology, He Xiaopeng stated:

"I am very confident that this year we will not only achieve a growth target of more than double in sales, but we are also confident that we will achieve profitability in Q4 2025, with a full-year scale of free cash flow."

He emphasized the need for stronger self-sustaining capabilities to support continuous breakthroughs in AI technology and product development.

MONA M03 MAX: Making AI No Longer Exclusive to Luxury Cars

He Xiaopeng proposed a concept: AI Equality.

In the past, urban intelligent assisted driving systems were often only equipped in high-end, high-priced models, but XPeng hopes to democratize technology so that young users can also experience advanced intelligence in models priced around 150,000.

He revealed that the MONA M03 MAX version, set to launch on May 28, will be equipped with the Turing AI assisted driving system, marking a truly meaningful initiative of "high-end technology, widely shared." He referred to it as:

"A milestone in AI equality in the automotive industry."

Overseas Sales Surge, XPeng Accelerates Globalization

XPeng's second growth curve—globalization—is also starting to run rapidly.

Q1 overseas sales increased by over 370% year-on-year, continuing to rank first in China's mid-to-high-end new energy exports;

Over 40 new overseas stores opened, with market expansion blooming from Europe (UK) to Southeast Asia (Indonesia);

He Xiaopeng stated that in the next three years, XPeng's overseas business will expand rapidly, becoming a dual engine for sales and profits. We look forward to XPeng entering the global market as a high-tech company, conducting R&D and manufacturing in multiple regions, and providing deeper localized services to create a mid-to-high-end global brand differentiated by technology.

Intelligent Driving Beyond L2, XPeng Aiming for L3 and L4 Levels

He Xiaopeng stated that XPeng will launch a "physical world foundational large model" covering all AI automotive scenarios by 2025, while also developing larger-scale cloud models and edge models.

He revealed that next, XPeng will shift from R&D in L2+ assisted driving to higher-level L3 and L4 autonomous driving technology, expecting to lead in generational advancements.

Full-Stack Self-Development System Formed

He Xiaopeng stated that 2025 will be the starting point for the comprehensive application of XPeng's physical world foundational large model in the AI automotive field, expanding its generational leading advantage.

He Xiaopeng revealed that XPeng has built the most complete and high-capacity full-stack self-development system in the industry, including:

Eagle Eye pure vision solution (not relying on LiDAR),

Turing high-performance self-developed chip,

Cloud-based ultra-large-scale large model,

Fully local deployed VLA model,

Whole vehicle EEA electronic and electrical architecture,

End-to-end physical simulation system, etc.

He Xiaopeng stated that this lays a solid foundation for our R&D roadmap in the high-level autonomous driving field and builds a competitive barrier that is difficult for competitors to surpass.

Eagle Eye Pure Vision: Leading Generational Advancement in Autonomous Driving

XPeng has become the first in the Chinese automotive industry to achieve urban intelligent assisted driving without relying on LiDAR Its core is the "Eagle Eye Pure Vision Solution," which has a high development difficulty but significantly improves safety and experience limits:

The capacity, parameter quantity, and inference frequency of the visual perception model have been upgraded, significantly reducing the response delay of assisted driving, enhancing user experience and safety simultaneously.

The optimization of perception capabilities in 360° complex scenarios has been achieved;

Especially in extreme scenarios such as complex urban roads, rainy and snowy weather, and U-turns, the user driving experience and safety have been maximized;

72 Billion Parameter Large Model: "Veteran Driver" Level AI Brain Has Taken Shape

Chips are the muscles, and models are the brains. XPeng's brain is not only smart but also becomes smarter on its own.

XPeng is currently training a large model with a scale of 72 billion parameters based on the physical world;

Behind it is the first 10,000-card intelligent computing cluster in the domestic automotive industry, with a cloud cluster operating efficiency of over 90%;

By the end of this year, the training data will exceed 200 million pieces of real video data, covering diverse driving scenarios across the country.

This large model not only understands the world but also possesses continuous learning capabilities:

Through Reinforcement Learning (RL) + model distillation, XPeng's large model will continuously evolve, ultimately becoming a general model that "surpasses human veteran drivers," promoting the implementation of L3/L4 autonomous driving.

He Xiaopeng stated that only AI cars with smart brains will provide an experience far superior to traditional cars, forming a fusion of brain, cerebellum, and spine capabilities.

Local Multimodal Large Model Cockpit: XPeng Cars Will "Understand You and Respond to You"

Not just driving, XPeng is also creating a smarter in-car companion.

He Xiaopeng revealed that XPeng's intelligent cockpit is developing a fully locally deployed multimodal large model system, deployed on Turing chips, with the following capabilities:

Supports local multilingual interaction;

Can run voice smoothly even without a network;

Provides a more personalized and safer cockpit experience;

Paves the way for rapid upgrades of the overall vehicle brain capabilities in the future.

He stated:

"Only AI cars with smart brains will make the final experience far exceed that of traditional cars."

In summary, XPeng Motors in 2025 will no longer be a company that simply talks about sales and model release rhythms. Through multiple statements by Chairman He Xiaopeng in the latest quarterly financial report, we see a technology company that is building on AI as its foundation, aiming for globalization, and targeting robotics as its endpoint