Xpeng Dives As China EV Startup Misses On Earnings, Guidance

xpeng ,XPEV), a China-based electric-vehicle startup and ambitious Tesla ,TSLA) Challenger, on Tuesday reported higher-than-expected losses, lowering revenue expectations. While vehicle deliveries accelerated in July, Xpeng delivered weak Q3 delivery and revenue guidance.

XPEV stock took a dive on Tuesday morning


The EV maker has operations in China, with offices in Mountain View, Calif. Since going public in 2020, it has faced a struggling economy, Covid lockdowns, government crackdowns on tech companies, and recent power restrictions in major provinces.

XPEV companions include NIO ,NIO, Baidu ,point, lee auto ,Took) And BYD Company ,BYDDFAll are major players of the EV market in China, and all are becoming Tesla’s more serious rivals for EV segment dominance in China.

Expeng Income

Estimate: Wall Street forecast a loss of 32 cents per share, with sales expected to rise 85% to $1 billion in the second quarter, according to FactSet. In Q2 2021, Xpeng reported a loss of 12-percent.

Result: Xpeng reported a net loss of 46 cents per share in the second quarter, while sales rose 87% to $1.1 billion.

Total vehicle deliveries increased 98% to 34,422 for the second quarter. Xpeng’s July sales report shows that the company’s overall sales surpassed both the Le Auto and Neo. The company had 11,524 vehicles in July, a year-on-year increase of 43%. Total deliveries for the year so far are 80,507 vehicles up 108%.

Xpeng currently has a three-vehicle lineup, with a new G9 sedan on the way. The carmaker plans to start accepting reservations for the G9 in August, followed by an official launch in September 2022, Xpeng has announced. This new flagship SUV is ready to replace the old G3.

“Despite the unprecedented circumstances brought on by the resurgence of COVID-19 in some regions of China, our deliveries maintained a strong growth momentum in the second quarter,” CEO He Xiopeng said in a statement.

Outlook: For the third quarter, Xpeng expects vehicle deliveries between 29,000-31,000, which would represent double-digit growth year-over-year, but a decline from Q2. With July deliveries already on hand, it suggests that Xpeng deliveries for August-September will be less than 20,000.

The company expects revenue of approximately $1 billion-$1.1 billion.

XPEV stock fell 12% to 18.54 near its March and May lows. Xpeng stock is struggling in 2022 and has dropped to a low of around 18 on May 13. The one-month rally found resistance in June at the stock’s 200-day moving average. XPEV has moved below its 50-day line and is trading even with its August 2020 IPO price.

It has reported profit only once in the fourth quarter of 2021 since Xpeng went public. The company earned 3 cents per share in Q4 2021 on revenue of $1.7 billion.

There are concerns that Xpeng’s target market is growing relatively slowly while competition intensifies, while its overall model lineup is aging. The G9 should help out later this year.

Ranked 12th in the company auto manufacturer industry group. Tesla, ford motor ,F, ferrari ,Caste) and the top four in the Lee auto category.

15 out of 99 composite rating of XPEV stock is weak. It has a 13 relative strength rating, which is also very weak. RS rating is a special IBD Stock Checkup Gauge for share-price strength that tops 99. The rating shows how a stock has performed over the past 52 weeks relative to all other stocks in IBD’s database. The EPS rating is 6.

Expang Eyes Flying Car Future

Last October, Xapeng CEO He Xiaopeng unveiled plans for the company’s latest generation of flying cars by its partner HT Aero.

Xpeng aims to have the flying car in mass production by 2024. More importantly, Xpeng plans to sell the vehicle for under RMB 1 million ($157,000).

The company says its mission is to make the pleasure of flying accessible to anyone who can drive, with flight control algorithmic assistance, intelligent assisted driving and steering wheel-independent steering.

Please follow Kit Norton on Twitter @ Kit Norton For more coverage.

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