XPeng shares rose on Tuesday after the Chinese electric car maker reported better-than-expected first-quarter numbers. This result shows that companies can still improve their execution despite challenging industry trends.
XPeng on Tuesday reported a first-quarter loss of 10 cents per share on revenue of $907 million. Wall Street had expected a loss of 33 cents on revenue of $859 million. A year ago, XPeng reported a loss of 38 cents per share on revenue of $573 million.
Gross profit margin for the quarter was about 13%, up about 11 points from the same period last year and about 2 points better than analysts expected.
XPeng’s US-listed US deposit receipts rose 26% to the day’s high. The stock rose 5.9% to close at $8.77.
S&P500
and
Nasdaq Composite
They rose by 0.3% and 0.2%, respectively.
Looking ahead, XPeng expects to sell 29,000 to 32,000 cars in the second quarter, up 25% to 38% year over year. Revenue is expected to be approximately $1.1 billion, an increase of approximately 60% from the same period last year.
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Revenue per vehicle (a proxy for price) for the second quarter is expected to be approximately $35,000. This is down from about $42,000 in the first quarter, but is expected to rise from about $30,000 in the second quarter of 2023.
XPeng’s new van, the X9, is priced at around $55,000 and appears to be contributing to the product mix.
“Despite intense market competition, the company’s gross margins… showed significant growth in the first quarter of 2024,” co-president Brian Gu said in a news release. “This means that XPeng has developed a unique approach based on smart EV business to increase profitability and international market potential by providing smart technology.”
The results seemed better than those of Li Auto
,
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What was reported on Monday. Li Auto’s performance fell short of Wall Street’s expectations. Additionally, sales growth is expected to be slower than unit sales, reflecting lower prices.
As a result, Lee shares fell 12.8%, and ADRs fell 42% this year. Entering Tuesday, XPeng’s ADRs were down about 43% in 2024. Through Tuesday’s trading, Li stock and XPeng stock fell about 44% and 40%, respectively.
Lower EV prices and slower demand growth have weighed on investor sentiment throughout the year.
Email Al Root at allen.root@dowjones.com.
