XPeng Stock Soars 6% on Earnings Reports

XPeng ( XPEV ), a Chinese electric vehicle (EV) maker that focuses on artificial intelligence (AI) technology, reported better-than-expected results as deliveries of its electric vehicles jumped. The company's loss was slashed in half, and revenue was up 62.3% year-over-year. Delivery increases increased 19.7% due to lower prices and the launch of a new model. American depositary receipts (ADRs) of XPeng ( XPEV ) surged after the company posted strong sales and slashed its losses on higher deliveries.

XPeng ( XPEV ) reported a first-quarter loss of 1.37 billion Chinese yuan ($190 million), about a billion yuan less than a year ago. Adjusted loss per American depositary share (ADS) of CNY1.49 was narrower than estimates. Revenue soared 62.3% to CNY6.55 billion, also better than forecasts. Gross margin skyrocketed to 12.9% from 1.7% a year ago.

Vehicle deliveries were up 19.7% year-over-year to 21,821, helped by a March price cut and the introduction of its X9 model during the quarter. Co-President Dr. Hongdi Brian Gu said that the performance came “despite fierce market competition,” arguing that the company “has developed a unique approach to lift its profitability and international market potential by providing smart technologies.”

XPeng ( XPEV ) expects current-quarter deliveries of 29,000 to 32,000, representing a 25.0% to 37.9% increase from a year earlier. It sees revenue in a range of CNY7.5 billion to CNY8.3 billion, a jump of 48.1% to 63.9% from Q2 2023. XPeng ADRs ( XPEV ) shares surged 8% to $8.77 as of the time of writing but have lost more than a third of their value this year.