XPeng, the China-based electric-vehicle startup and aspiring Tesla 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 include Nio, Baidu, Li Auto and BYD Co.. 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 the second quarter.
Total vehicle deliveries for the second quarter increased 98% to 34,422. XPeng's July sales reports showed 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.
The company ranks 12th in the Auto Manufacturers industry group. Tesla, Ford Motor, Ferrari and Li Auto are the top four in the category.
XPEV stock has a weak 15 Composite Rating out of 99. It has a 13 Relative Strength Rating, also very weak. The RS rating is an exclusive IBD Stock Checkup gauge for share-price strength that tops out at 99. The rating shows how a stock's performance over the last 52 weeks holds up against all the other stocks in IBD's database. The EPS rating is 6.
XPeng Eyes Flying Car Future
Last October, XPeng CEO He Xiaopeng unveiled plans for the company's latest generation of flying cars made by its affiliate HT Aero.
XPeng aims to have the flying car in mass production by 2024. More important, XPeng is planning to sell the vehicle under RMB 1 million ($157,000).
The company says its mission is to make the joy of flying accessible to anyone who can drive, with flight control algorithm assistance, intelligent assisted driving and steering wheel-independent operation.
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