Key Takeaways
- XPeng reported better-than-expected results as deliveries of its electric vehicles jumped.
- The Chinese carmaker’s loss was slashed in half, and revenue was up 62.3% year-over-year.
- Deliveries increased 19.7% on lower prices and the launch of a new model.
American depositary receipts (ADRs) of XPeng (XPEV) surged Tuesday after the Chinese electric vehicle (EV) maker that focuses on artificial intelligence (AI) technology posted strong sales and slashed its losses on higher deliveries.
XPeng reported a first-quarter loss of 1.37 billion Chinese yuan ($190 million), about a billion yuan less than a year ago. Adjusted loss per American depositary share (ADS) of CNY1.49 was narrower than estimates. Revenue soared 62.3% to CNY6.55 billion, also better than forecasts. Gross margin skyrocketed to 12.9% from 1.7% a year ago.
XPeng noted vehicle deliveries were up 19.7% year-over-year to 21,821, helped by a March price cut and the introduction of its X9 model during the quarter.
Co-President Dr. Hongdi Brian Gu said that the performance came “despite fierce market competition,” arguing that the company “has developed a unique approach to lift its profitability and international market potential by providing smart technologies.”
‘AI-Powered Smart Cars’
Chief Executive Officer (CEO) Xiaopeng He added that XPeng “took the lead in the mass production and application of AI-based large models within the China automobile industry,” and said the firm believes it can launch competitive models around the world and “spearhead the widespread adoption of AI-powered smart cars.”
XPeng expects current-quarter deliveries of 29,000 to 32,000, which would represent a year-over-year increase of 25.0% to 37.9%. It sees revenue in a range of CNY7.5 billion to CNY8.3 billion, a jump of 48.1% to 63.9% from Q2 2023.
XPeng ADRs surged 8% to $8.91 as of 11 a.m. ET Tuesday but have lost more than a third of their value this year.