China EV Maker Xpeng’s Shares Leap on Unexpectedly Stellar Earnings
Zhang Yushuo
DATE:  Nov 13 2020
/ SOURCE:  Yicai
China EV Maker Xpeng’s Shares Leap on Unexpectedly Stellar Earnings China EV Maker Xpeng’s Shares Leap on Unexpectedly Stellar Earnings

(Yicai Global) Nov. 13 -- China’s NEV startup Xpeng shares [NYSE:XPEV] skylarked 33.52 percent to USD44.73 after it registered strong deliveries and financial results yesterday that far outstripped the market forecast.

Accelerated deliveries of the P7 since Guangzhou-based Xpeng began its mass delivery in late June drove its revenue up 342.5 percent to CNY1.99 billion (USD293.1 million) from a year ago, thumping the market’s expected CNY1.9 billion.

Net losses widened to CNY1.15 billion (USD169.2 million) in the third quarter from CNY776.3 million for the same period last year and CNY146.0 million for the second quarter.

“In our first quarter as a public company we achieved strong operating and financial results, highlighted by the rapid growth in deliveries of our P7 Smart EV,” said He Xiaopeng, the company's chairman and chief executive.

The company’s gross margin was 4.6 percent in the third quarter, compared with a negative 10.1 percent for the same period last year and minus 2.7 percent for the second quarter.

Meteoric Rise

Data shows 8,578 vehicles delivered in the third quarter, 265.8 percent more than the same period last year, 6,210 of which were P7s, as against 325 in the second quarter.

Xpeng expects to deliver some 10,000 vehicles, up 211 percent on the year. Total revenue is expected to be CNY2.2 billion in a 243.7 surge from last year’s fourth quarter.

The firm participated in the Double-11 shopping festival for the first time this year, with its orders topping 18,000, a figure higher than the firm’s cumulative deliveries from January to October this year.

Xpeng successfully completed C+ funding of USD900 million and initial public offering funding of USD1.7 billion, raising a total of nearly USD2.6 billion, He Xiaopeng said following the release of the financial results.

Editor: Ben Armour

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Keywords:   NEV,XPeng