XPeng stock is down 5 percent after its earnings report this month, and the growth of the company appears to be slowing down. The company’s production and shipments have been hit by COVID-19 restrictions, and it also reports its first loss since 2010.
XPeng’s growth is slowing
XPeng’s growth is slowing down, and investors are concerned about the company’s economics. The company has been struggling with multiple issues, including supply chain constraints, chip shortages, and COVID-19 lockdowns. It also faces an internal battle over its competitiveness.
As a result, XPeng’s stock has fallen over the past year, reducing its value by about 10%. However, investors are hopeful that the company’s growth will pick up again in the future. In fact, Xpeng’s chief executive, He Xiaopeng, said that the company had started to see signs of improvement. Besides, the company has a new product in the pipeline.
XPeng’s sales rose in the second quarter, but the company’s net loss widened to $403 million. The company noted that higher costs for materials and marketing expenses contributed to the wider loss.
COVID-19 restrictions hurt November production and shipments
XPeng’s delivery and shipments in November were significantly lower than they were in October. It’s hard to know whether or not the COVID-19 restrictions are to blame, but the fact that deliveries decreased by 63% suggests that there was some kind of impact. The good news is that the company expects to see a much larger increase in deliveries in December.
However, the company’s revenue was less than stellar. The company reported its quarterly earnings, and while it did manage to beat analyst estimates, it failed to match the numbers that were expected. The company also guided for lighter-than-expected vehicle deliveries in the fourth quarter of 2022.
It’s not just XPeng that has had to contend with COVID-19-related challenges. Nio has also had to cope with supply chain woes. While XPeng’s delivery and shipment figures in November were not a disaster, it has been a rough year for the EV industry.
XPeng stock (NYSE: XPEV) was down more than 5% after its third-quarter earnings report. The EV maker reported mixed results, with a loss of 13 cents a share for the quarter. The company’s net loss was 2.7 billion RMB, or $333 million, due to higher operating expenses and weaker gross margins.
XPeng’s gross profit margin was 13.5% in the quarter. However, it expanded by 20 basis points from the previous year’s quarter. This is the highest gross profit margin for the EV maker so far this year.
Despite the strong numbers, XPeng’s management guidance for the second quarter of the current year has disappointed. Analysts are projecting a lower-than-expected number of deliveries for the quarter. The EV maker has estimated 20,000 to 21,000 deliveries for the fourth quarter. These figures could fall short of analyst forecasts by as much as 20%.
XPeng’s 60-month beta
XPeng has been a pioneer in the smart electric vehicle space in China. It’s a leader in ADAS technologies, semi-autonomous functions, and next-generation hardware and software. The company has a wide array of SUVs and sedans under the G3 and G3i names. It has two upcoming EVs in the pipeline.
Its most recent model, the P5, is an electric sedan that has launched in Denmark, Norway, Sweden, and the U.S. It is a lower-priced alternative to the Tesla Model 3.
In the coming months, XPeng will launch the G9, a flagship SUV. The automaker also plans to introduce full-scenario ADAS on the car. The vehicle’s navigation-guided pilot, or City NGP, promises to do things like cruise control, avoid obstructions, and navigate stationary vehicles. It is being tested on a pilot basis in Guangzhou.
XPeng’s most recent earnings
XPeng’s (XPEV) most recent earnings were more disappointing than expected. The Chinese automaker reported a net loss of $335 million in the third quarter. While it narrowed from the loss it reported in the second quarter, the number was still much larger than analysts had forecast. The company reported revenues of 6.82bn Chinese yuan, which was about 6% lower than what Financial Times analyst estimates had called for.
Despite the losses, the XPeng management said it was still trying to improve its operations. They spoke about the need for internal restructuring in order to achieve long-term goals. The company is in the process of adapting to a new product replacement cycle. The president also said the company aims to produce a free cash flow positive in 2024.