In 2025, China’s three leading EV startups—NIO, Li Auto, and XPeng—collectively crossed the breakeven threshold for the first time, marking the industry’s shift from “burning cash for scale” to sustainable growth. NIO delivered over 326,000 vehicles for the full year, turned its operating profit positive in Q4, and achieved a vehicle gross margin of 18.1%. Li Auto reported revenue of RMB 112.3 billion, posted profits for the third consecutive year, and held cash reserves exceeding RMB 100 billion. XPeng saw deliveries surge by 125.9%, recorded its first-ever quarterly profit in Q4, and posted a gross margin of 21.3%. While each company has pursued a distinct strategy—NIO building a multi-brand portfolio and battery-swapping ecosystem, Li Auto focusing on the family market and operational efficiency, and XPeng betting on intelligent driving technology for overseas expansion—all three are accelerating investments in AI, chips, and broader tech ecosystems. Competition has now evolved into a contest of integrated systemic capabilities. In 2026, with a wave of new product launches and the realization of technological dividends, these EV upstarts are entering a new phase characterized by concurrent profitability and growth.