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On Tuesday, Xpeng Inc (NYSE:XPEV) reported its first fiscal quarter results that showed it did a great job of narrowing its loss on the back of higher EV deliveries and improved margins. Upon the results, XPeng’s shares rose 13%.
For the quarter ended in March, revenue soared 62.3% to 6.55 billion yuan, which amounts to about $905.21 million, surpassing LSEG estimate of 6.17 billion yuan. The adjusted loss per share amounted to 1.45 yuan, which is better than the consensus estimate of a 1.94 yuan loss. XPeng succeeded to almost halve its loss to 1.37 billion Chinese yuan, amounting to $190 million.
With lowered prices in March as it followed the footsteps of Tesla Inc (NASDAQ:TSLA) and the launch of the new model X9, deliveries grew 19.7% to 21,821 vehicles.
Gross margin skyrocketed from last year’s comparable quarter when it amounted to 1.7% to 12.9% with vehicle margin rising 5.5%, reflecting that XPeng is making more profit from its EV sales.
XPeng guided for that deliveries will rise between 25% to 37.9% YoY in the current quarter, amounting to 29,000 to 32,000 units. Revenue is expected to rise between 48.1% and 63.9%, ranging from 7.5 billion yuan to 8.3 billion yuan.
XPeng proved it has a unique value proposition.
XPeng Co-President Dr. Hongdi Brian Gu emphasized that XPeng showed strength despite fierce market competition from Tesla and BYD Company Limited (OTC:BYDDY), which suggests the EV maker has developed a unique approach to lift its profitability and international market potential with its offerings. CEO Xiaopeng added that XPeng is leading the way in the mass production and application of AI-based large models within China’s automobile industry.
XPeng’s first flying car is coming soon.
Last week, XPeng’s affiliate, Xpeng AeroHT, revealed it aims to deliver its flying car to customers in 2026, which is a slightly later than the fourth-quarter of the 2025 delivery target that XPeng had previously promised.
XPeng AeroHT revealed the Land Aircraft Carrier last year. This year, Xpeng said that the flying car is currently going through a certification process with the regulatory aviation authority in China. The reason behind its confidence is the fact XPeng is designing this project for use in remote scenic areas, which eliminated the complex approvals that are required for more urban surroundings. By working with municipalities, XPeng aims to create flying parks and zones that will allow people to enjoy flying without the regulatory hassle. This project is merely one of Xpeng’s long-term goals as it looks to expand into other areas of electric mobility.
XPeng continues to expand its offerings as well as its footprints.
Over the next three years, XPeng is aiming to launch several new models priced between 100,000 yuan to 400,000 yuan, with the electric sedan coming already in the fourth quarter. Xpeng is also looking to expand its footprint across 20 countries worldwide, beginning with Europe and more precisely, Germany, the home of its partner, Volkswagen Group (OTC:VWAGY). Together, XPeng and Volkswagen are working to develop smart EVs at China speed. Its rival Nio Inc (NYSE:NIO) has also recently expanded into Europe. But when it comes to Nio, its monthly deliveries in China are still relatively modest compared to its rivals. But what Nio and XPeng have in common is that they are both turning to mass market for growth as both Nio and Xpeng are turning to lower-priced segments. XPeng plans to launch the first vehicle from its lower-cost vehicle brand Mona in June and it revealed it will be an electric sedan below 200,000 yuan or $27,890. Nio announced earlier in April that its first market car will be an SUV with a lower price tag from Tesla Model Y. But, despite massive competition in China and being threatened by BYD, EV pioneer Tesla succeeded to remain a major player that generates significant sales. However, with its most recent results, XPeng reflects the high gear of its rivals besides the Tesla killer itself, BYD.
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This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
