TECH - XPeng Is Expecting A Brighter 2024 Despite Intensified Competition | Benzinga
On Wednesday, XPeng Inc (NYSE: XPEV) delivered its third quarter results that showed aggressive promotions with which the EV maker responded to Tesla Inc (NASDAQ: TSLA), who kicked off a price war at the beginning of a year, took a toll on its bottom line.
XPeng Reported Its Losses Widened
For the quarter ended on September 30th, revenue surged 22% YoY to $1.17 billion, slightly missing FactSet’s estimate of $1.19 billion. But this is XPeng’s first revenue gain since 2022’s third quarter as well as its return to more than $1billion in sales since 2022’s second quarter. Yet, gross margin swinged to negative 2.7% from 13.5% in 2022’s comparable quarter. Cost of sales rose both YoY and quarter-over-quarter to $1.2 billion which is a 48.4% rise. Although deliveries rose 72.4% from the second quarter, higher costs, owed to the rise of cost of sales and inventory write-downs, resulted in ...