XPEVCAUTIOUS

XPEV Gross Margin Analysis

20.6%

Higher than 31% of Consumer Cyclical sector peers

Updated 251h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, with the remaining amount available to cover overhead and profit.

Sector Performance

31th percentile

XPEV

20.6%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

21.3%(May 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, with the remaining amount available to cover overhead and profit.

XPEV's current gross margin of 20.6% is below the Consumer Cyclical sector median of 33.7%, placing it in the 32nd percentile among peers. The trend data is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so there is no historical basis to assess momentum. A margin level well under the sector median already signals thinner pricing power or higher production costs, and the absence of trend data adds uncertainty about whether that gap is widening or closing. For an investor, this combination points to elevated downside risk if competition or cost pressures persist, though it also leaves room for improvement if management executes on cost control. This metric supports the overall CAUTIOUS verdict, as the below-median margin and lack of trend visibility do not justify a more positive stance.

Frequently Asked Questions

What does the Gross Margin tell investors about XPEV?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does XPEV's Gross Margin compare to its sector?

XPEV's Gross Margin of 20.6% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 31th percentile.

Who are XPEV's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), AEO (33.9%), URBN (36.6%), GME (40.7%), RH (41.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.