The four leading new energy vehicle makers—NIO, XPeng, Li Auto, and Leapmotor—have delivered symbolic financial results during this earnings season. Leapmotor reported an annual profit of 540 million yuan, becoming the second startup after Li Auto to achieve full-year profitability. Li Auto posted a profit of 1.1 billion yuan, marking its third consecutive year in the black. Both XPeng and NIO returned to profitability in the fourth quarter. This collective shift from burning cash for growth to crossing the profitability threshold represents a milestone in the development of China's EV startups.
However, a deeper look into their financial reports reveals underlying challenges. NIO’s quarterly profit sustainability remains in question, XPeng’s core business continued to record losses in Q4, and Li Auto faces pressure despite its annual profit. As these companies enter their second decade, maintaining their position in the competitive landscape will require significant effort.
All four automakers have set ambitious growth targets for 2026. Yet, as of 2025, only Li Auto surpassed 100 billion yuan in revenue, while Leapmotor was the sole player to deliver over 500,000 vehicles. Their strategies vary widely—from aggressive volume-driven expansion to strategic adjustments amid falling sales and prices—painting distinct growth trajectories.
For now, Leapmotor appears to have a temporary breather, though it confronts new challenges from rapid scaling. Li Auto is grappling with declining profit margins, while XPeng and NIO’s reported profits are heavily influenced by non-recurring items, making each quarter’s earnings crucial. The real test of whether these players can stay at the table will come in 2026.
Comments