XPeng Achieves Historic Milestone with First-Ever Quarterly Profit

Chinese electric vehicle manufacturer XPeng (XPEV) reported its first-ever quarterly net profit of RMB 0.38 billion ($54.8 million), a sharp reversal from a RMB 1.33 billion loss a year earlier. Despite this historic milestone, the company's US-listed shares fell nearly 5% in early trading as investors focused on a weak near-term outlook. The profitability was driven by lucrative technology partnerships and sales of high-margin EV models, which helped offset intense domestic price competition. XPeng also attributed its success to improved operational efficiencies that mitigated the impact of fading government subsidies in China. However, the disappointing forward-looking guidance overshadowed the financial turnaround, raising concerns about future growth sustainability. Investors are now closely monitoring XPeng alongside peers like NIO and Li Auto to see if the sector can maintain momentum amid macroeconomic headwinds.