Xpeng Shares Jump 26% Midday on Stronger Q1 Revenue and Q2 EV Guidance

TMTPost-- The American Depositary Receipts (ADRs) of Xpeng Inc. jumped as much as 26.4% before settling 5.9% higher to US$8.77 on Tuesday. Shares of the Chinese electric vehicle (EV) manufacturer outperformed the U.S. stock market as the benchmark S&P 500 edged up 0.25% and domestic peers fell. The shares rally came after Xpeng posted stronger-than-expected performance in the beginning of the year and EV sales guidance for the current quarter.

Credit：Xpeng

Xpeng reported total revenue in the quarter ended March 31, 2024 surged 62.3% year-over-year (YoY) to RMB6.55 billion (US$0.91 billion), beating analysts’projection of RMB6.11 billion. Net loss narrowed 41.5% YoY to RMB1.37 billion, or RMB1.49 per American depositary share (ADS) on non-GAAP basis, compared with analysts estimated loss and RMB2.40 and loss of RMB2.57 per ADS a year ago. Gross margin in the first quarter more than doubled YoY to 12.9%, topping Wall Street forecast of 9.15%.

Xpeng’s main business vehicle also recorded double-digit YoY growth, driven by a 19.7% YoY increase in delivery in the March quarter. Revenue from vehicle sales climbed 57.8% YoY to RMB5.54 billion, while decreasing 54.7% from the previous quarter. Xpeng attibuted the YoY increase to higher deliveries, particularly the model X9 in the first quarter, and said the quarter-over-quarter (QoQ) decrease was mainly attributable to lower deliveries of the G6 and the 2024 G9, compounded by seasonal impact, partially offset by contribution of the X9, Xpeng’s first full-electric MPV (Multi-Purpose Vehicle) model.

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Xpeng at the start of this month said it shipped 9,393 vehicles in April, up 33% YoY, and the X9 achieved monthly deliveries of 1,959 units in April, with cumulative deliveries nearing 10,000 units since its launch on January 1. X9 maintained its position as the top-selling all-electric MPV in China.

Another highlilghts in the first quarter is that Xpeng’s segment of services and others generated RMB1.0 billion, representing a 93.1% YoY growth and a 22.1% QoQ growth. .These increases were mainly owing to the revenue from technical research and development service recorded in the first quarter, which is related to the platform and software strategic technical collaboration with the Volkswagen Group.

Xpeng sealed a framework agreement on strategic technical collaboration with Volkswagen in July 2023. Under the agreement, Xpeng and Volkswagen will jointly develop two B-class BEV models for sale in the Chinese market under Volkswagen brand, leveraging respective core competencies and Xpeng’s full-stack technologies, from EV platform G9 to Connectivity and advanced driver-assistance system (ADAS) software. The models are expected to start production in 2026. The parties will explore additional potential strategic cooperation in a number of areas, including collaboration on future EV platforms, software technologies and supply chain.

Looking forward, Xpeng expected revenue in the second quarter to be between RMB7.5 billion and RMB8.3 billion, representing a YoY increase range of 48.1% and 63.9%. Delivery that quarter is expected to be between 29,000 and 32,000, with a YoY growth of 25% and 37.9%, beating midpoint of analysts’estimates of 25,000 and 30,000.

“Despite fierce market competition, the company’s gross profit margin saw a substantial increase to 12.9% in the first quarter of 2024,” Honorary Vice Chairman Hongdi Brian Gu said at a statement Tuesday. “This signifies that XPeng, based on its smart EV business, has developed a unique approach to lift its profitability and international market potential by providing smart technologies.”

Prior to the financial results, Xpeng released on Monday its XOS 5.1.0 to users via the Over-the-Air (OTA) update. The XOS 5.1.0 integrated AI-powered smart cabin functions and XNGP ADAS technologies, including AI Valet Driver and XPlanner with neural network-based planning and control large model.

At the statement about quarterly results, Xpeng Chairman and CEO He Xiaopeng expressed upbeat on artificial intelligence (AI) application outlook, noting his company took the lead in the mass production and application of AI-based large models within the China auto industry. “We are confident that we can launch competitive models globally in a more efficient manner and thus spearhead the widespread adoption of AI-powered smart cars,”He said. “Through our strategic partnership with the Volkswagen Group, XPENG is at the forefront of monetizingin-house developed smart technologies as a technology enabler. Our industry-leading technologies are expected to gain greater market influence andyield better financial returns.”