Xpeng’s Q2 earnings show a couple of things. First, the worse-than-expected loss demonstrates the toll that China’s ongoing Covid-19 lockdowns have taken on its manufacturing sector. China is reportedly in the midst of its worst Covid-19 outbreak since March 2020.
Secondly, Xpeng’s deliveries indicate that the company is separating itself from its main Chinese rivals. The deliveries also indicate that the company has been able to ramp up production despite ongoing domestic issues. CEO He Xiaopeng said the following amid the Q2 results:
“Our deliveries sustained robust growth momentum in the second quarter despite unprecedented circumstances brought by the resurgence of COVID-19 in certain areas of China.”
Looking ahead, Xpeng forecasts vehicle deliveries between 29,000 and 31,000 for the third quarter, representing double-digit YOY increases. The company expects Q3 revenue between $1 billion and $1.1 billion as well.
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