Xpeng stock (XPEV) Q1 2023 Earnings Report: Expected to Decline in Deliveries|usa4world

Chinese electric vehicle firm shares xpeng .It declined on Wednesday after the company reported lower-than-expected earnings and a decline in car sales.

Shares of Xpeng were down more than 11% shortly after the US opening bell.

Here’s how the company fared against Refinitiv consensus estimates for the first quarter:

  • Income: 4.03 billion Chinese yuan ($571.6 million) versus 5.19 billion yuan expected. This represents a decline of 50% year-on-year.
  • Net loss: 2.34 billion yuan versus 1.9 billion expected. This was much higher than the 1.7 billion yuan loss recorded in the same quarter of 2022.

Xpeng forecast its second quarter vehicle deliveries to be between 21,000 and 22,000, indicating a year-over-year decrease of between 36.1% and 39.0%.

The company forecast revenue of between 4.5 billion yuan to 4.7 billion yuan in the second quarter, down between 36.8% and 39.5% year-on-year.

Xpeng has suffered in its home market of China from a number of factors. The country abruptly revoked its strict COVID-19 control measures in December. However, China’s economic recovery has been uneven, with mixed data. This has affected consumer spending.

But the Guangzhou-headquartered company is also facing intense competition from other startups in electric vehicles Lee Auto And nio as well as established players like Tesla and Warren Buffett Endorsed BYD.

Read more about electric vehicles from sources Pro

Tesla To increase demand, prices are being cut in China, which has also affected Xpeng’s competitiveness.

Xpeng delivered 18,230 cars in the first quarter, down about 47% from the same period a year ago.

The company has been reorganizing its management structure and restructuring the company over the last few months in the hope of opening the way for growth.

“During the first quarter of 2023, I took action to make decisive changes to our strategy, organizational structure and senior management team,” Xpeng CEO He Xiaopeng said in a statement.

“I am fully confident of taking our company into a virtuous cycle of product sales growth, team morale, customer satisfaction and brand reputation over the next few quarters.”

Xpeng is preparing to launch its new sports utility vehicle named G6 this year to boost sales and revive its brand image.

“As the upcoming G6 launch and other new product launches continue to drive sales growth, we expect our cash flow from operations to significantly improve,” Xpeng co-president Brian Gu said in a statement.

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