Xpeng (NYSE: XPEV) expects to see single-quarter break-even for the first time this year, as its deliveries have remained strong over the past few months.
The electric vehicle (EV) maker's chairman and CEO He Xiaopeng mentioned the goal in an interview with local media outlet LatePost, the first time Xpeng's management has talked about a timetable for reaching breakeven.
“We expect to be able to break even for a single quarter sometime in 2025,” Mr. He said, according to the text of the interview released today.
He said this when asked if Xpeng would achieve scale through low gross margins. “Low gross margin is just a process, [we] must not be low gross margin in the future,” he said.
Mr. He's comments come as Xpeng maintained strong deliveries in January, while major local peers saw weak performance.
The company delivered 30,350 vehicles in January, the third consecutive month above the 30,000 mark, according to figures it released on February 1.
That's up 267.88 percent from 8,250 a year ago, though down 17.29 percent from 36,695 in December.
Earlier today, Li Auto (NASDAQ: LI) released figures for insurance registrations by major carmakers in Weeks 4-5 of 2025 -- January 20 to February 2 -- that showed Xpeng at No. 1 among new carmakers with 11,100 units.
This is the second time Xpeng has been No. 1 on the list, the last time being the week ending January 5.
In the interview with LatePost, Mr. He mentioned that a company should make money first and then spend it instead of relying on financing.
He also mentioned the importance of managing the supply chain as a CEO, claiming that some of the people working in procurement at the company worked together to deceive him.
“I also said to Li Bin that you have to personally manage the supply chain and you have to understand it. It doesn't work if you don't personally manage it or if you don't understand it,” Mr. He said.
Li Bin, or William Li, founder, chairman, and CEO of Nio (NYSE: NIO), said in an earnings call last November 20 that Nio was aiming for a full-year profitability in 2026.
Mr. He also mentioned that Xpeng would roll out the Max variant of the Mona M03 in the second quarter.
The company launched the Mona M03 on August 27, 2024, when it announced three variants -- 515, 620, and 580 Max -- with starting prices of RMB 119,800 ($16,440), RMB 129,800, and RMB 155,800, respectively.
Deliveries of the two less expensive variants of the Mona M03 have already begun. Xpeng previously said that deliveries of the Max variant would start after the Chinese New Year holiday in 2025.
The two less expensive variants of the Mona M03 support pilot-assisted driving on highways, while the Max additionally supports urban roads.
($1 = RMB 7.2887)
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