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.