Chinese Tesla rival shares dive 11% after it forecasts a plunge in car deliveries
Xpeng shares were down after the company reported earnings that missed expectations and forecast a plunge in car sales.
Xpeng’s revenue in the first quarter plunged 50% year-on-year to 4.03 billion Chinese yuan ($571.6 million).
Xpeng has been hurt by a tough macroeconomic situation in China as well as rising competition from Tesla, BYD and electric car startups.
Xpeng’s revenue in the first quarter plunged 50% year-on-year to 4.03 billion Chinese yuan ($571.6 million).
Xpeng has been hurt by a tough macroeconomic situation in China as well as rising competition from Tesla, BYD and electric car startups.
Shares of Chinese electric vehicle firm Xpeng dropped on Wednesday after the company reported earnings that missed expectations and forecast a plunge in car sales.
Here’s how the company did versus Refinitiv consensus estimates for the first quarter:
Revenue: 4.03 billion Chinese yuan ($571.6 million) versus 5.19 billion yuan expected. That represents a 50% year-on-year plunge.
Net loss: 2.34 billion billion yuan versus 1.9 billion expected. That was wider than the 1.7 billion yuan loss reported in the same quarter in 2022.
Xpeng forecast deliveries of its vehicles to be between 21,000 and 22,000 in the second quarter, representing a year-over-year decrease of between 36.1% to 39.0%.
Xpeng has been hurt by a number of factors in its home market of China. The country abruptly scrapped its strict Covid-19 control measures in December. However, China’s economic recovery has been uneven with mixed data. That has weighed on consumer spending.
Tesla has been cutting prices in China to spur demand which has also weighed on Xpeng’s competitiveness.
Xpeng is gearing up to launch its new sports utility vehicle this year called the G6 in a bid to revive sales and its brand image.
Here’s how the company did versus Refinitiv consensus estimates for the first quarter:
Revenue: 4.03 billion Chinese yuan ($571.6 million) versus 5.19 billion yuan expected. That represents a 50% year-on-year plunge.
Net loss: 2.34 billion billion yuan versus 1.9 billion expected. That was wider than the 1.7 billion yuan loss reported in the same quarter in 2022.
Xpeng forecast deliveries of its vehicles to be between 21,000 and 22,000 in the second quarter, representing a year-over-year decrease of between 36.1% to 39.0%.
Xpeng has been hurt by a number of factors in its home market of China. The country abruptly scrapped its strict Covid-19 control measures in December. However, China’s economic recovery has been uneven with mixed data. That has weighed on consumer spending.
Tesla has been cutting prices in China to spur demand which has also weighed on Xpeng’s competitiveness.
Xpeng is gearing up to launch its new sports utility vehicle this year called the G6 in a bid to revive sales and its brand image.
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BrandonyOP ZnWC:
