Xpeng gave lackluster revenue and EV delivery guidance early Monday after losses and revenue both swelled in the first quarter, amid supply disruptions. Xpeng stock tumbled.
"We remain confident in expanding our market share despite the impact of semiconductor shortage and Covid-19," Xpeng CEO He Xiaopeng said in an earnings release early Monday.
On an earnings call, management reportedly said that Xpeng resumed double-shift production at the Zhaoqing plant in mid-May and will accelerate EV deliveries. The report added management sees chip supply disruptions taking longer to address than one might expect. Xpeng will launch the G9 electric SUV in Q3, with two more new EVs arriving in 2023.
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Xpeng Earnings
Early Tuesday, Xpeng reported a Q1 loss of 28 cents per ADR. Revenue soared 144%, year over year, to $1.117 billion. However, sales growth slowed from a 303% gain the prior quarter.
Analysts polled by FactSet expected Xpeng to widen losses to 28 cents per ADR vs. a loss of 8 cents a year ago. They saw revenue jumping 139% to $1.092 billion.
Revenue, EV Delivery Outlook
Xpeng sees Q2 revenue at RMB 6.8 billion-RMB 7.5 billion ($1.02 billion-$1.13 billion). That would represent a year-over-year gain of 81%-99%, in local currency terms, but is below analyst views for about RMB 8.3 billion.
In the current second quarter, Xpeng expects to deliver 31,000-34,000 EVs. That would be up 78%-95%, year over year, but below Q1 deliveries of 34,561 EVs.
Xpeng delivered 9,002 EVs in April, down 42% vs. March. That means Xpeng sees May-June EV deliveries of roughly 22,000-25,000, closer to its pre-Covid levels as China's lockdowns ease.
China EV Startups Challenging Tesla, BYD
Rival Nio announced Sunday that it will report Q1 results June 9, before the market open. Earlier in May, Li Auto gave weak revenue and EV delivery guidance.
All three China EV startups aspire to challenge Tesla, as well as homegrown EV and battery giant BYD, in the Chinese market for luxury electric cars.
China has begun relaxing stringent lockdown measures, part of its zero-Covid-policy. April sales plunged in April vs. March for Xpeng and its startup peers, with factory and production shutdowns or slowdowns crippling the EV supply chain.
XPEV Stock
Shares of Xpeng sank 5.5% to 21.98 on the stock market today. Xpeng stock remains below a falling 50-day average and its relative strength line shows serious lag. Nio stock lost 2.7% Monday, Li gave up 2.2%. Tesla rose 1.7%.
BYD rose 2.6% as it reportedly plans to launch a premium sub-brand in Q4. Nio and Li Auto target the premium end of the China EV market. BYD also began presales of its Tesla Model 3 rival, the Seal EV sedan, after robust EV sales in April despite China lockdowns.
Earlier in May, Nio and Xpeng stock sank after joining Li Auto on the provisional list of Chinese companies poised for a U.S. delisting.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
