XPeng Inc. (NYSE:XPEV) Unable to Convinces With Better Vehicle Delivery Results

The leading Chinese smart electric vehicle, XPeng Inc. (NYSE:XPEV) dropped over 5.26% to $17.69 on Tuesday early Trading session after the firm declared its vehicle delivery results for August 2022. XPeng reported monthly vehicle deliveries of 9,578 Smart EVs in August that is a increase of 33% year-over-year. The firm handed over 90,085 Smart EVs in total for the first eight months in 2022 to customers that are 96% surge year-over-year.

As per reported data, firm has delivered of 5,745 P7s smart sports sedan in August, 2,678 P5 smart family sedans and 1,155 G3i and G3 smart compact SUVs. The Chinese EV firm revealed Q2 financial results that didn’t live up to the high anticipation shareholders have had of the electric vehicle maker.

XPeng’s stats didn’t seem too horrible at first sight. 7.43 billion Chinese renminbi ($1.1 billion) was the total revenue for the quarter, nearly doubling the amount from the same period last year. The 34,422 vehicles delivered during the time increased 98% over the previous year. The more recent developments for XPeng, however, have not been as positive. After reaching a peak of 41,751 in the fourth quarter of 2021, the data showed that car deliveries had decreased from the previous three months for the second consecutive quarter.

More concerningly, losses increased as car margin estimates dropped significantly. Even with share-based compensation taken into account, XPeng still lost $368 million in the second quarter of 2022, more than doubling its loss from the same period the year before.

The bad news was revealed by XPeng’s future recommendations. Deliveries should drop to between 29,000 and 31,000 in the third quarter, according to the business. Even while it would still be a rise over the previous year, the subsequent sequential downturn indicates that China’s economic conditions are getting worse. Similar to this, sales between 6.8 and 7.2 billion yuan isn’t exactly making growth investors happy.

For the quarter, the gross margin dropped by 100 basis points to 10.9%. The firm reported that Vehicle margin dropped by 190 basis points to 9.1%, mostly as a result of rising battery prices. Chairman and CEO He Xiaopeng stated that they are on track for the official release of their flagship G9 SUV in September 2022.

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