Xpeng Clocks 15% Q3 Deliveries Growth, Expects Q4 Deliveries Of 20K-21K, Implements Cost Control Initiatives

• XPeng Inc (NYSE: XPEV) reported third-quarter FY22 sales growth of 19.3% year-on-year, to RMB6.82 billion ($0.96 billion), missing the consensus of $1.01 billion.

• The Tesla Inc (NASDAQ: TSLA) rival's quarterly vehicle deliveries increased 15% Y/Y to 29,570.

• P7 smart sports sedan deliveries fell 15% to 16,776, and P5 smart family sedan deliveries were 8,703.

• The gross margin contracted by 90 basis points to 13.5%. Vehicle margin contracted 200 basis points to 11.6%, mainly attributable to the battery cost increase.

• The operating loss for the quarter was RMB(2.18) billion or $(0.31) billion versus a loss of RMB(1.80) billion last year.

• The company held $5.64 billion in cash and equivalents.

• Non-GAAP net loss per ADS was RMB(2.59) or $(0.36) was in line with the consensus.

• Total deliveries reached 5,101 vehicles in October 2022 versus 10,138 in October 2021.

• "We will implement prudent cost control initiatives and improve operational efficiency," said Dr. Hongdi Brian Gu, Honorary Vice Chairman and President of XPENG. "As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price."

• Outlook: XPeng sees Q4 vehicle deliveries of 20,000 – 21,000, down 49.7% - 52.1% Y/Y.

• The company expects Q4 revenue of RMB4.8 billion - RMB5.1 billion, representing a Y/Y decrease of 40.4% - 43.9%.

• Price Action: XPEV shares are trading higher by 12.94% at $8.29 in premarket on the last check Wednesday.

• Photo Via Company

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