XPeng(XPEV), the China-based electric-vehicle startup and aspiringTesla(TSLA) challenger, reported a greater-than-expected loss while narrowly topping revenue expectations Tuesday. While the vehicle deliveries ballooned in July, XPeng gave weak Q3 deliveries and revenue guidance.
XPEV stock dived Tuesday to a five-month low.
The EV manufacturer has its operations in China, with offices in Mountain View, Calif. Since going public in 2020, it has weathered a struggling economy, Covid lockdowns, government crackdowns on tech companies and recent power restrictions in key provinces.
XPEV peers includeNio(NIO),Baidu(BIDU),Li Auto(LI) andBYD Co.(BYDDF). All are major EV market players in China, and all are becoming more serious rivals to Tesla for EV segment dominance in China.
XPeng Earnings
Estimates: Wall Street forecast a loss of 32 cents per share, with sales expected to grow 85% to $1 billion in the second quarter, according to FactSet. In Q2 2021, XPeng reported a 12-cent loss.
Results: XPeng reported a net loss of 46 cents per share while sales grew 87% to $1.1 billion in in the second quarter.
Total vehicle deliveries for the second quarter increased 98% to 34,422. XPeng'sJuly sales reportsshowed the company's total sales outpaced both Li Auto and Nio. The company had 11,524 vehicles delivered in July, a 43% increase year-over-year. Total deliveries for the year so far are up 108% to 80,507 vehicles.
XPeng currently has a three-vehicle lineup, with the new G9 sedan on the way. The carmaker plans to begin accepting reservations for the G9 in August, followed by an official launch in September 2022, XPeng has announced. This new flagship SUV is set to replace the aging G3.
"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," CEO He Xiaopeng said in a statement.
Outlook: For the third quarter, XPeng expects vehicle deliveries between 29,000-31,000, which would represent double digit year-over-year increases, but a decline from Q2. With July deliveries already in hand, that suggests XPeng deliveries will be below 20,000 for August-September combined.
The company is expecting revenue around $1 billion-$1.1 billion.
XPEV stock plunged nearly 1% to 18.73, hitting a five-month low intraday. XPeng stock has struggled in 2022. A monthlong rally found resistance at the stock's 200-day moving average in June. XPEV has dropped below its 50-day line and is trading about even with its August 2020 IPO price.
Since XPeng went public it has only reported a profit once, in the fourth quarter of 2021. The company earned 3 cents per share on $1.7 billion in revenue in Q4 2021.
There is concern that XPeng's target market is growing relatively slowly while competition is intensifying, while its overall model lineup is aging. The G9 should help later this year.$XPeng Inc.(XPEV)$
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