XPeng has released today its earnings related to Q financial results, beating estimates at the top line, but missing on earnings. Its revenues Forex news amounted to $1.11 billion in the quarter, being slightly ahead of estimates, while its EPS loss of $0.43 was 32% worse than expected.
Taking into account this backdrop, XPeng reported today a relatively good set of results, considering the challenges the company had to face during the last quarter, namely factory shutdowns and the ongoing supply chain issues affecting the auto industry. Chinese electric vehicle manufacturer XPeng recently reported its Q earnings results. The company dotbig website beat revenue expectations but missed earnings per share expectations and gave guidance that didn’t e… Between 2013 and 2017, China witnessed the worst air pollution it has ever seen. China initiated a very effective policy of cutting its vehicle registration lottery from 250,000 to 150,000 and allotting 20,000 of those slots to new energy vehicles.
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The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. So, investors should be reasonable about their expectations with XPeng. Any posted results should be considered in xpeng stock forecast the context of the aforementioned challenges. Just because the investing community is disappointed with XPeng’s results, it doesn’t mean that you have to be disappointed. On top of all that, XPeng has had to persist through global supply-chain bottlenecks.
As a dual-primary listing, XPeng will be eligible for Stock Connect, an investment channel facilitating trade between Hong Kong and mainland China. With its listing in Hong Kong, XPeng became the first US-listed Chinese firm with dual primary listing. The move will as well provide some security for the https://finviz.com/forex.ashx company in the event of being kicked off the US market. Europe is currently the second largest EV market accounting for 28% of the global market. China’s EV exports lag behind that of the US and Europe’s EV companies. In late December 2020, XPeng stated it would be delivering the G3 SUV to Norway.
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This is further corroborated by XPeng’s recent decision to suspend reservations on its P5 sedans in Europe due to “global supply chain issues”, which we have touched on in a previous coverage. It is also likely one of the key reasons why XPeng’s m/m deliveries for July fell by almost a quarter compared to the record-setting volumes achieved in June. Despite these organic initiatives, external factors are also hurting the company, namely Shanghai’s lockdowns during the quarter and supply chain issues, penalizing the company with production losses and chip shortages. This situation is not expected to change dramatically in the short term, especially the supply chain issues, explaining its conservative guidance for the coming quarter. XPeng has two factories, one in Zhaoqing and the other being built in Guangzhou.
- This means that, assuming the same 2.2x forward sales multiple, XPeng’s fair value would be about $59 per share by end-2024, which is way above its current share price.
- Nevertheless, sales growth should be supported by upcoming models in the next few months, given that in addition to the G9, XPeng is expected to launch two new models during 2023, enhancing its product offering in the mid-market segment.
- Chairman and CEO He said “Wuhan’s strategic location as an auto manufacturing and distribution hub will further enhance our supply chain management, sales and distribution network in the future.”
- Still, the market’s initial response to data can be surprising sometimes – and perhaps even irrational.
In March 2021, the company received a $76.9 million funding from Guangdong Yuecai Investment Holdings Co. TipRanks is a comprehensive investing tool that allows private investors and day traders to see the measured performance of anyone who provides financial advice. For the second quarter of 2022, XPeng expects dotbig to deliver 31,000 to 34,000 vehicles, which would represent a year-over-year increase of around 78.2% to 95.4%. Reportedly, the company’s net earnings loss widened to approximately $268.3 million during 2022’s first quarter. This might seem surprising since, clearly, XPeng is demonstrating revenue growth.
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This draws questions as to what is hampering XPeng’s stock from exhibiting similar resilience as its Chinese EV peers. In many ways, XPeng’s fundamental performance has been similar, if not better, than its domestic Forex peers. And from a valuation perspective, the stock also faces the same downside risks pertaining to regulatory uncertainties (e.g. Beijing regulatory crackdown; HFCAA delisting risks) like its peers.
More important, XPeng is planning to sell the vehicle under RMB 1 million ($157,000). Last October, XPeng CEO He Xiaopeng unveiled plans for the company’s latest generation of flying cars made by its affiliate HT Aero. Regarding its financial position, XPeng had cash of about $6.2 billion at the end of June, which is enough to finance its growth over the next few years, and therefore, the current risk of shareholder dilution seems to be low. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment XPEV returns. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. On Tuesday, Xpeng reported a net loss of 2.7 billion Chinese yuan ($403.2 million), wider than the 1.6 billion yuan expected according to Refinitiv consensus estimates. In March 2019, Tesla sued Cao Guangzhi, a former Tesla employee, accusing him of stealing its Autopilot source code and bringing them to XPeng.
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Xpeng Inc is a China-based company engaged in design, development, production and sales of smart electric vehicles . The Company’s primary products are environmentally friendly https://dotbig.com/ vehicles, namely an SUV and a four-door sports sedan . The Company’s Smart EVs primarily target the mid- to high-end segment in China’s passenger vehicle market.
Gu said the company hopes monthly deliveries of the G9 will exceed those of its flagship P7 sedan next year. XPeng has moved away from CTP batteries to LFP batteries, which negates the need for cobalt in a battery, one of the most expensive materials in a battery. XPeng started production of its first model, https://dotbig.com/markets/stocks/XPEV/ the XPeng G3 SUV, in November 2018. It launched the G3 in December 2018 at the 2018 Consumer Electronics Show in Las Vegas. XPeng’s subsidiary in the United States, XMotors.ai held a permit for testing self-driving cars from the California Department of Motor Vehicles starting in September 2018.
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Since XPeng went public it has only reported a profit once, in the fourth quarter of 2021. The company earned 3 cents per share on $1.7 billion in revenue in Q4 2021. XPeng currently has a three-vehicle lineup, with the new G9 sedan on the way. The carmaker plans to begin accepting reservations for the G9 in August, followed by an official launch in September 2022, XPeng has announced. Due to higher raw material and battery costs, vehicle margin decreased again during the last quarter, reaching 9.1%, being the lowest level in the past few quarters (10.4% in the previous quarter and 11% in Q2 2021). Xpeng blamed the disappointing Q2 results on ongoing Covid-19 lockdowns in China — where the company has its manufacturing base — as well as softening consumer demand in the face of high inflation and rising interest rates. Despite the poor earnings, however, the company also reported a big jump in its EV deliveries for July.