Chinese EV Makers Leapmotor, Nio and Xpeng Report First Quarterly Profits

Leapmotor, Nio and Xpeng have turned the financial corner in 2025, each recording a profit for the first time after years of losses. Leapmotor posted a profit of $78 million for the year, Nio posted an adjusted net profit of $104 million in Q4, and Xpeng reported a net profit of about $55 million in the same quarter.

These gains join the ranks of other Chinese electric‑vehicle companies that have already been profitable, such as BYD, Xiaomi and Li Auto. Analysts attribute the improvement to better market understanding, cost control and extensive government support – China is estimated to have spent roughly $230 billion on the EV sector from 2009‑2023, and firms like BYD have received direct subsidies of at least $3.7 billion.

In contrast, Western automakers continue to invest heavily in electrification, with U.S. groups such as General Motors, Ford and Stellantis spending billions on development, while Tesla’s profit has begun to slip as sales slow. European manufacturers face financial pressure but keep launching new models with longer range and faster charging.