Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News

Editor's Pick

Xpeng slammed as revenue, deliveries, margins, guidance miss

Xpeng (NYSE: XPEV), a leading Chinese electric vehicle company, published weaker-than-expected results as the number of vehicle deliveries dropped. As a result, the Xpeng stock price dropped by more than 5% in pre-market trading. 

In a statement, Xpeng said that its total vehicle deliveries in the first quarter came in at 18,230, much lower than the 34,561 vehicles it sold in the same period in 2022. It was also lower than the 22,204 it sold in the fourth quarter. 

The decline in deliveries happened even as Chine ended its Covid-zero strategy and the company expanded its physical sales network to 425 stores in 145 cities. Its charging network jumped to over 1,000 in the first quarter. 

As a result, the company’s revenue came in at RMB 4.03 billion, which is equivalent to $0.59 billion. This was a 45% decrease from the same quarter last year. Its gross margin fell to 1.7% in Q1 from the 12.2% it had in Q1 of 2022. Net loss also widened to RMB 2.34 billion.

These results provide further evidence that the EV industry in China is slowing after years of growing. Other companies like BYD and Nio have also reported slowing sales growth recently. Tesla, the biggest EV company in the world, is also seeing slow sales growth, which has pushed it to slash prices in the past few months.

As I wrote here, Xpeng’s revenue growth has been slowing at a faster pace in the past few months. In 2022, its revenue jumped to over $3.8 billion from the previous $3.32 billion. In 2021, its revenue came in at over $803 million.

A key challenge for Xpeng is that its market is just in China and has no exposure to highly profitable countries like the US and Europe. Also, competition is rising, with the number of EV companies in China rising. Estimates are that there are almost 100 EV cars in the country.

The post Xpeng slammed as revenue, deliveries, margins, guidance miss appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Everynet, one of the world’s largest network operators for national LoRaWAN® networks, announces it is working with Amazon Web Services (AWS) to offer long-range...


    As more candidates throw their hats into the 2024 Presidential ring, I’d like to offer a proposal that should have immediate bipartisan support: stop...

    Editor's Pick

    The Internet of Things (IoT) is changing the way we interact with technology, and it has the potential to revolutionize the way we manage...

    Editor's Pick

    Semtech Corporation and esteemed engineering design services firm, Connected Development, today announced the launch of the new XCVR Development Board and Reference Design integrating...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023