XPEV - Xpeng stock drives lower on widening losses weak sales forecast

2023-05-24 06:38:50 ET

Xpeng ( NYSE: XPEV ) shares slid over 5% in premarket action on Wednesday after lagging behind Q1 expectations in its latest earnings report.

The Guangzhou-based automaker notched a $0.37 loss per adjusted diluted share, wider than expected . Meanwhile, a 45.9% decline in sales from the prior year quarter to $587.31M came in $125.36M below consensus estimates. Total deliveries in the quarter reached 18,230, down about 17.9% from Q1 2022. Quarterly gross margin was 1.7%, down 7% sequentially.

“During the first quarter of 2023, I took actions to make changes to our strategy, organizational structure and senior management team decisively. I am fully confident in taking our Company into a virtuous cycle driving product sales growth, team morale, customer satisfaction and brand reputation over the next few quarters,” CEO He Xiaopeng said. “G6, the first production model built on XPENG’s next-generation technology architecture SEPA2.0, will be officially launched in June 2023. I believe the G6 will emerge as one of the most popular, best-selling models in China’s NEV SUV market segment with a price range between RMB200,000 to RMB300,000.”

The company said that it delivered 7,079 vehicles in April 2023 and is eyeing between 21,000 and 22,000 deliveries for Q2 overall. That figure represents a 36.1% to 39% decline year over year. Total revenues are projected to be between RMB4.5B ($638.3M) and RMB4.7B ($666.7M), representing a year-over-year decrease of approximately 36.8% to 39.5% and falling well below the analyst consensus that anticipated over $1B in revenue for the year.

Shares of Xpeng ( XPEV ) drove 5.5% lower before the bell on Wednesday after the announcement .

More on Xpeng:

Electric vehicle stocks drop as fears of a pricing war reverberate

XPeng: Credibility Needs To Be Earned Through Deliveries

XPeng: Expensive EV Company In A Highly Competitive Market

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