XPeng is dealing with rising material costs and was forced to raise the prices of its cars earlier this year.
Chen Yihan | Visual China Group | Getty Images
Chinese electric car maker XPeng posted a higher-than-expected loss and lower-than-expected earnings. This is thanks to increased competition and a challenging macroeconomic environment.
XPeng shares rose 10% in US pre-market trading.
Results for Q3 2022 compare to Refinitiv’s consensus forecast as follows:
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- Earnings: CNY 6.82 billion (USD 960.9 million) compared to the forecast of CNY 7.26 billion. This is a 19.3% increase over the previous year.
- Net loss: 2.38 billion yuan, compared to the expected 2.09 billion yuan. This was higher than the net loss of 1.59 billion recorded in the same period last year, but lower than the second quarter.
XPeng delivered 29,570 electric vehicles in the third quarter. This is 15% higher than the same period last year. However, it was down 14% from the second quarter of this year.
XPeng delivered 5,101 vehicles in October, down significantly from 8,468 delivered in September.
The Guangzhou-based company has faced several challenges in recent months, including widespread Covid lockdowns in China as it battles outbreaks in various cities. Like other automakers, XPeng has dealt with rising material costs. price increase of that car earlier this year.
The company expects to deliver 20,000 to 21,000 vehicles in the fourth quarter, down about 49.7% to 52.1% year-on-year.
XPeng shares are down 85% this year as investors turn away from Chinese growth stocks amid a slowing economy and rising global interest rates.
Many analysts lowered their price targets for the company. This week, Jeffries lowered his price target on XPeng stock to $4.20 from his $18.6.
https://www.cnbc.com/2022/11/30/xpeng-xpev-q3-earnings-revenue-profit-miss-expectations.html XPeng (XPEV) Third Quarter Earnings: Earnings, Earnings Below Expectations