Chinese electric-vehicle maker Xpeng Inc. reported a wider-than-expected fourth-quarter loss and said deliveries could drop as much as 48% in the first three months of this year versus the same period in 2022.
(Bloomberg) — Chinese electric-vehicle maker Xpeng Inc. reported a wider-than-expected fourth-quarter loss and said deliveries could drop as much as 48% in the first three months of this year versus the same period in 2022.
Xpeng posted a net loss of 2.36 billion yuan ($342 million) in the three months ended Dec. 31, according to a statement Friday. That was worse than the 2.1 billion yuan deficit forecast by analysts, and compared with a 1.29 billion yuan loss the year before. Revenue slumped 40% to 5.14 billion yuan, missing the 5.7 billion yuan forecast.
“With the optimization of our product portfolio and the significant improvement of our marketing capabilities, we will resume growth in our sales and market share,” Co-President Brian Gu said in the filing. Chief Executive Officer He Xiaopeng said the company has “comprehensively” reviewed its strategy.
Xpeng is in closer competition with Tesla Inc. in terms of product lineup and pricing range than its US-listed rivals Nio Inc. and Li Auto Inc., making it more susceptible to price competition. Earlier this year, it slashed prices of its two main models, days after Tesla announced sharp cuts on its locally-built vehicles.
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Xpeng’s loss wraps up a disappointing year. It delivered 120,757 cars in 2022 — less than half of its initial goal — and its shares slumped 80%. It also pushed back its target of reaching operating profitability to 2025.
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The EV maker said it expects to deliver 18,000 to 19,000 cars this quarter, while total revenue should be between 4 billion yuan and 4.2 billion yuan, a decrease of approximately 44% to 46% from the same period last year.
New model rollouts and capacity expansion in the next 18-24 months could continue to cap Xpeng’s gross margin, even as China’s EV sales are expected to jump as the country emerges from Covid, Bloomberg Intelligence said in a recent note.
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