XPeng (XPEV), China’s electric-vehicle startup and aspiring Tesla (TSLA) challenger, reports earnings Tuesday. While the company’s vehicle deliveries ballooned in July, economic turbulence in China continue to be a concern for XPEV and the broader auto industry.
X
The EV manufacturer is based in China with offices in Mountain View, Calif. Since it went public in 2020, it has weathered a struggling economy, Covid lockdowns, government crackdowns on tech companies and recent power restrictions in key provinces.
XPEV peers include Nio (NIO), Baidu (BIDU), Li Auto (LI) and BYD Co. (BYDDF). All are major EV market players in China, and all are becoming more serious rivals to Tesla for EV segment dominance in China.
XPeng currently has a three-vehicle lineup, with the new G9 sedan on the way. After its launch in early 2020, XPeng’s P7 sports sedan quickly reached a total of 20,000 deliveries and surpassed the G3 compact SUV as the firm’s most popular vehicle. With this result, the P7 became the fastest vehicle to reach 20,000 deliveries of any Chinese EV startup.
XPeng’s earnings this week come after July sales reports showed the company outpaced both Li Auto and Nio. The company had 11,524 vehicles delivered in July, a 43% increase year-over-year. Total deliveries for the year so far are up 108% to 80,507 vehicles. Electric-car sales for June increased by 133% year over year to 15,295, according to XPeng.
The carmaker plans to begin accepting reservations for the new G9 in August, followed by an official launch in September 2022, XPeng has announced. This new flagship SUV is set to replace the aging G3.
XPeng Earnings
Estimates: Wall Street forecasts a loss of 32 cents per share, while sales are expected to grow 85% to $1 billion in the second quarter, according to FactSet. In Q2 2021, XPeng reported a 12-cent loss.
Results: Check Tuesday before the market opens.
XPEV shares were down o.99% to 21.03 during Monday market trading. The stock has struggled in 2022 and fell to a low of around 18 on May 13. A monthlong rally found resistance at the stock’s 200-day moving average in June. XPEV has dropped below its 50-day line and is trading about even with its August 2020 IPO price.
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. Analysts are projecting a net loss of 99 cents per share and $5.8 billion in revenue for the full 2022 fiscal year, according to FactSet.
The company ranks 12th in the Auto Manufacturers industry group. Tesla, Ford Motors (F), Ferrari (RACE) and Li Auto round out the top four in the category.
XPEV stock has a 12 Composite Rating out of 99. It has a 12 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 6.
XPeng Eyes Flying Car Future
Last October, XPeng CEO He Xiaopeng unveiled plans for the company’s latest generation of flying cars made by its affiliate HT Aero.
XPeng aims to have the flying car in mass production by 2024. More important, XPeng is planning to sell the vehicle under RMB 1 million ($157,000).
The company says its mission is to make the joy of flying accessible to anyone who can drive, with flight control algorithm assistance, intelligent assisted driving and steering wheel-independent operation.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
YOU MAY ALSO LIKE
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
Top Funds Buy Into No. 1 Industry Leader Near Breakout With 364% Growth
Trade With Experts on IBD Live
