Tesla vs XPeng: Revenue, Profit and Business Model
Tesla reported $94.8B of revenue in FY2025 and $3.8B of net income. XPeng reported ~$10.7B of revenue in FY2025 and a net loss of ~$158.4M.
Latest financial snapshot
Financial summary
Tesla
Tesla's revenue peaked at $97.69 billion in 2024 and slipped 2.9% to $94.83 billion in FY2025, while net income fell from $7.09 billion to $3.79 billion as vehicle prices and regulatory-credit income declined. The second quarter of 2026 reversed the top-line trend: revenue rose 26% to a record $28.24 billion, with automotive up 23% to $20.52 billion, services and other up 50% to $4.58 billion, and energy up 13% to $3.14 billion. Profit did not follow. GAAP net income fell 5% to $1.11 billion and adjusted EPS of $0.33 missed estimates because of higher R&D and AI infrastructure spending.
XPeng
FY2025 revenue was ~$10.7 billion (RMB76.72 billion) (+87.7%), with a net loss of ~$158 million (RMB1.14 billion) and a first quarterly profit in Q4. In Q2 2026, revenue was ~$2.74 billion (RMB19.74 billion), gross margin 20.7% and net loss ~$186 million (RMB1.34 billion). Cash was ~$5.63 billion (RMB40.48 billion) at June 30, 2026.
Revenue and profit by year
Tesla
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $94.8B | $3.8B | 4.0% | -2.9% | Source |
| FY2024 | $97.7B | $7.1B | 7.3% | +0.9% | Source |
| FY2023 | $96.8B | $15B | 15.5% | +18.8% | Source |
| FY2022 | $81.5B | $12.6B | 15.4% | +51.4% | Source |
| FY2021 | $53.8B | $5.5B | 10.3% | +70.7% | Source |
| FY2020 | $31.5B | $721M | 2.3% | +28.3% | Source |
| FY2019 | $24.6B | -$862M | -3.5% | +14.5% | Source |
| FY2018 | $21.5B | -$976M | -4.5% | +82.5% | Source |
| FY2017 | $11.8B | -$2B | -16.7% | +68.0% | Source |
| FY2016 | $7B | -$674.9M | -9.6% | — | Source |
XPeng
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$10.7B | ~-$158.4M | -1.5% | +87.7% | Source |
| FY2024 | ~$5.7B | ~-$804.8M | -14.2% | +33.2% | Source |
| FY2023 | ~$4.3B | ~-$1.4B | -33.8% | +14.2% | Source |
| FY2022 | ~$3.7B | ~-$1.3B | -34.0% | +28.0% | Source |
| FY2021 | ~$2.9B | ~-$676M | -23.2% | +259.1% | Source |
| FY2020 | ~$812.4M | ~-$379.7M | -46.7% | +151.8% | Source |
| FY2019 | ~$322.6M | ~-$513.1M | -159.0% | — | Source |
Where the revenue comes from
Tesla
- Automotive sales and leasing~73%
Model 3, Model Y, Cybertruck and remaining other models, plus regulatory credits. $20.52B in Q2 2026.
- Services and other~16%
Supercharging, FSD and connectivity software, service, used cars, insurance and parts. $4.58B in Q2 2026, up 50%.
- Energy generation and storage~11%
Megapack, Powerwall and solar. $3.14B in Q2 2026, up 13%.
XPeng
- Vehicle Sales86
Sales of XPENG and MONA electric vehicles; ~$2.37 billion (RMB17.05 billion) in Q2 2026.
- Services and Others14
Technical R&D services for a car manufacturer, parts and accessories, and other services; ~$375 million (RMB2.70 billion) in Q2 2026.
Business model and strategy
Tesla
How it makes money
Tesla operates a vertically integrated electric vehicle, clean energy generation, and software ecosystem model. The company generates revenue across four primary pillars: First, Automotive Sales and Leasing, selling mass-market electric vehicles (Model Y, Model 3) and premium models (Model S, Model X, Cybertruck) directly to consumers without franchised dealers.
Growth strategy
Tesla's growth plan rests on four bets. First, regain vehicle volume: deliveries fell 8.6% to 1.64 million in 2025, then rebounded to a record 480,126 in Q2 2026, up 25% year over year. Second, autonomy: Tesla runs a paid robotaxi service in several U.S. cities and is building the steering-wheel-free Cybercab, though the Q2 2026 shareholder letter dropped the target of volume production in 2026.
Competitive advantage
Tesla's advantage comes from brand strength, direct sales, software updates, charging infrastructure, battery and powertrain know-how, manufacturing scale, data, and energy-storage growth.
XPeng
How it makes money
XPeng earns most of its revenue by designing, building and selling smart electric vehicles under the XPENG and MONA brands. In Q2 2026, vehicle sales brought in ~$2.37 billion (RMB17.05 billion) of ~$2.74 billion (RMB19.74 billion) in total revenue. The rest comes from services and other revenue (~$375 million (RMB2.70 billion) in Q2 2026).
Growth strategy
XPeng's growth plan has three parts: a wider vehicle lineup (new models such as the GX and MONA L03), more overseas sales (MONA L03 had its global launch in Munich in July 2026), and turning its in-house AI work into new businesses. That AI work covers Turing chips, driving models, robotaxis and the IRON humanoid robot, now housed in the separately financed Dogotix subsidiary.
Competitive advantage
XPeng develops its driver-assistance software and AI chips in-house and earns high-margin technical service revenue from Volkswagen. Its services and other segment posted a 75.1% margin in Q2 2026.
Questions about Tesla vs XPeng
Which company has higher revenue — Tesla, Inc. or XPeng?
Tesla, Inc. reported $94.8B (FY2025), while XPeng reported ~$10.7B (FY2025). By last reported revenue, Tesla, Inc. is the larger business, with XPeng reporting a smaller revenue base.
What is the market cap of Tesla, Inc. vs XPeng?
Tesla, Inc.'s market capitalisation stands at $1.49T, while XPeng's is $10.6B. Tesla, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to XPeng.
Which is more financially efficient — Tesla, Inc. or XPeng?
Tesla, Inc. generates $704k / employee in revenue per employee, while XPeng generates $536k / employee. Tesla, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Tesla, Inc. and XPeng make money?
Tesla, Inc. and XPeng generate revenue in fundamentally different ways. Tesla, Inc.: Tesla operates a vertically integrated electric vehicle, clean energy generation, and software ecosystem model. XPeng: XPeng earns most of its revenue by designing, building and selling smart electric vehicles under the XPENG and MONA brands.
Which company is valued higher relative to revenue — Tesla, Inc. or XPeng?
On a price-to-sales (P/S) basis, Tesla, Inc. trades at 15.7x P/S and XPeng at 1.0x P/S. Tesla, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to XPeng. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Tesla, Inc. bigger than XPeng?
By last reported revenue, Tesla, Inc. ($94.8B (FY2025)) is the larger company compared to XPeng (~$10.7B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Tesla vs XPeng overview