(Yicai) Nov. 16 -- Shares of Xpeng Motors dropped after the Chinese new energy vehicle startup said its net loss widened 64 percent in the third quarter of the year from a year earlier.

Xpeng [HKG: 9868] was trading down 4.2 percent at HKD64.95 (USD8.32) as of 3.45 p.m. in Hong Kong today. However, the company’s New York-listed stock [NASDAQ: XPEV] closed 2.3 percent up at USD17.39 yesterday.

Net loss was CNY3.9 billion (USD537.6 million) in the three months ended Sept. 30, widening 64 percent from the same period last year and 39 percent from the previous quarter, mainly because of changes in fair value loss on derivative liability of CNY1 billion resulting from the fluctuation in the fair value of the share purchase agreement related to the issuance of shares to strategic minority investor Volkswagen Group, the Guangzhou-based firm announced yesterday.

In July, Xpeng signed a deal with Volkswagen for the latter to purchase a 5 percent stake in the Chinese peer for USD15 per American depository share for a total of USD700 million. The purchase has not yet been completed, but the cooperation between the pair is progressing smoothly in accordance with relevant procedures.

Xpeng’s third-quarter revenue reached CNY8.5 billion, up 25 percent from a year earlier and 69 percent from the second quarter, as car deliveries in the period exceeded 40,000 units, up 35 percent and 72 percent, respectively.

In October, Xpeng’s deliveries surged 292 percent to 20,002 units from a year earlier, exceeding the threshold of 20,000 units for the first time and logging a month-on-month increase for the ninth consecutive month.

Xpeng also said yesterday that it raised its performance guidance for the fourth quarter, with expected deliveries of 59,500 to 63,500 units, up 168 percent to 186 percent from a year earlier. The firm’s revenue will likely jump between 86 percent and 99 percent to about CNY12.7 billion in the period.

Editors: Shi Yi, Futura Costaglione