The company is set to increase R&D headcount by 1500 to 4500 by the end of 2021.
XPeng Motors reported revenue of CNY 3.761 billion (USD 582.5 million) in the second quarter, beating market expectations of CNY 3.436 billion, according to the company's unaudited financial report released Thursday.
That was up 536.7 percent from a year ago and 27.5 percent from the first quarter.
The company reported revenue from vehicle sales of CNY 3.584 billion in the second quarter, up 562.4 percent from a year earlier and 27.5 percent from the first quarter.
It reported a net loss of CNY 1.19 billion in the second quarter, below Wall Street analysts' expectations for a net loss of CNY 1.236 billion. This was up about 52 percent from CNY 786.6 million in the first quarter.
XPeng reported a loss of CNY 0.75 per share in the second quarter with an adjusted loss of CNY 0.69 per share.
Its gross margin was 11.9 percent in the second quarter, up from 11.2 percent in the first quarter. Its gross margin was -2.7 percent in the same period last year.
The company's vehicle gross margin for the second quarter was 11.0 percent, compared with -5.6 percent for the same period of 2020 and 10.1 percent for the first quarter of 2021.
XPeng delivered 17,398 new vehicles in the second quarter, up 439 percent year-over-year and up 30 percent from the first quarter.
XPeng P7 deliveries in the second quarter were 11,522 units, up 44.5 percent from the first quarter, 97 percent of which support XPILOT 2.5 or XPILOT 3.0, the company said.
XPeng expects third-quarter revenue of CNY 4.8 billion to CNY 5 billion, compared with analyst estimates of CNY 4.27 billion.
The company expects third-quarter deliveries of 21,500 to 22,500 units, representing a year-over-year increase of approximately 150.6 percent to 162.3 percent.
As of June 30, XPeng had 200 brick-and-mortar retail stores and 64 service centers covering 74 cities. It has 231 XPeng-branded supercharging stations covering 65 cities.
"We delivered another record-breaking quarter with new highs recorded in several key metrics, underscoring an accelerated growth trajectory powered by our full-stack in-house technology capability," said He Xiaopeng, Chairman and CEO of XPeng.
"Notably, deliveries for the first half of 2021 exceeded the total deliveries for the full year 2020, reaching 30,738, a 459 percent increase year-over-year," he said.
"As EV adoption in China and around the world begins to soar, we are excited to lead in this unprecedented disruption opportunity with our outstanding vehicles and fast, seamless iterations of new technologies that are shaping the mobility experience of the future," he added.
"Our outstanding second quarter 2021 results reflect XPeng’s leadership in China’s booming Smart EV industry where we continue to introduce innovative technology, differentiated products and premium services," said Brian Gu, Honorary Vice Chairman and President of XPeng.
"Fueled by strong delivery performance, our second quarter 2021 revenues grew 536.7 percent compared with the same period of 2020. We also witnessed further improvement in our profitability. In particular, our gross margin continued its upward trend and reached 11.9 percent in the quarter," Gu concluded.
This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.