XPeng (NYSE:XPEV) stock is on the climb today, up 5% as of this writing after delivering a promising first-quarter earnings report this morning. The Chinese electric vehicle (EV) maker managed to handily beat earnings, margin and guidance estimates in its fiscal Q1.

Indeed, XPeng announced an EPS loss of 10 cents on sales of $907 million, better than forecasts for a 33 cent EPS loss on $859 million in sales. Revenue came in at nearly double the sales the company reported a year prior.

The company’s sales were notably helped by a substantial jump in revenue from services, largely due to its recent deal with Volkswagen (OTCMKTS:VWAGY) in “autonomous driving and advanced in-car software systems.”

“Through our strategic partnership with the Volkswagen Group, XPeng is at the forefront of monetizing in-house developed smart technologies as a technology enabler,” said Chairman and CEO Xiaopeng He.

Quarterly gross profit margins climbed 13% in Q1, up 11% year-over-year (YOY) and slightly better than analysts’ projections. The improved margin was also the result of increases in its service-based sales.

XPeng expects to sell between 29,000 and 32,000 vehicles in Q2, up between 25% and 38% YOY. This represents sales of about $1.1 billion, or 60% higher than in Q2 2023.

“Despite fierce market competition, the company’s gross profit margin saw a substantial increase [in Q1],” said Co-President Brian Gu. “This signifies that XPeng, based on its smart EV business, has developed a unique approach to lift its profitability and international market potential by providing smart technologies.”

XPEV Stock Soars on Promising Earnings

Despite today’s gains, XPeng remains another brutal victims of this year’s EV winter. Indeed, XPEV stock is down 38% year-to-date (YTD), along with most other EV makers this year.

Li Auto (NASDAQ:LI), Nio (NYSE:NIO) and former EV darling Tesla (NASDAQ:TSLA) are all well in the red this year as slowing EV sales recalibrate the entire industry. This comes as the S&P 500 is up 12% YTD not even six months into 2024.

That said, XPeng fans will still be pleased with the company’s recent performance, on its balance sheet and otherwise.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.