XPeng (NYSE: XPEV) stock surged in intraday trading Tuesday after the Chinese electric vehicle (EV) maker reported better-than-expected results for the first quarter.
XPeng (XPEV) recently reported robust sales figures and a significant reduction in losses for the first quarter of 2024, driven by higher vehicle deliveries.
For the first quarter of 2024, the EV maker reported a loss of 1.37 billion Chinese yuan ($190 million), marking an improvement of around one billion yuan compared to last year. The adjusted loss of XPeng per American depositary share (ADS) came in at CNY1.49 ($0.21), narrower than analysts’ estimates. Revenue surged 62.3% to CNY6.55 billion ($910 million), beating forecasts, while the gross margin surged from 1.7% to 12.9% year-over-year.
Vehicle deliveries surged 19.7% YoY to 21,821 units, supported by a strategic March price cut and the launch of the new X9 model.
Dr. Hongdi Brian Gu, Co-President of XPeng, attributed the company’s improved performance to its strategic initiatives despite intense market competition. He highlighted XPeng’s “unique approach to lift its profitability and international market potential by providing smart technologies.”
Chief Executive Officer Xiaopeng He elaborated on the company’s advancements in AI, noting that XPeng has “taken the lead in the mass production and application of AI-based large models within the China automobile industry.” He expressed confidence in the company’s ability to launch competitive models globally and lead the adoption of AI-powered smart cars.
Looking ahead, XPeng forecasts delivering between 29,000 and 32,000 vehicles in the current quarter, representing a year-over-year increase of 25.0% to 37.9%. The company expects its revenue to range between CNY7.5 billion – CNY8.3 billion in the second quarter. This figure reflects a significant jump of 48.1% to 63.9% from the corresponding quarter in the previous year.
XPeng (NYSE: XPEV) Stock Reaction
XPEV stock jumped 5.92% on Tuesday, closing at $8.77 and marking a 5.92% gain for the week. The trading volume reached 61,603,288 shares, significantly higher than the average daily volume of 15.54 million.
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