XPeng Inc (NYSE: XPEV) reported a significant decline in sales for the first quarter of 2023, with a year-on-year decrease of 45.9% to RMB4.03 billion ($587.31 million). This figure fell short of the consensus estimate of $741.07 million. The company’s quarterly vehicle deliveries also experienced a decline, decreasing by almost 18 perecent.
The decline in revenues from vehicle sales was even more pronounced, with a year-on-year decrease of 49.8 percent. This decline can be attributed to lower vehicle deliveries as well as the discontinuation of subsidies for new energy vehicles. The gross margin contracted by 1,050 basis points, reaching 1.7%, while the vehicle margin contracted by 1,290 basis points, resulting in a negative margin of (2.5)%.
XPeng’s operating loss for the quarter amounted to RMB2.59 billion or $0.38 billion, compared to a loss of RMB1.92 billion in the previous year. The company had $4.97 billion in cash and equivalents, indicating a strong cash position.
On a non-GAAP basis, the net loss per American Depositary Share (ADS) was RMB(2.57) or $(0.37), which missed the consensus loss of $(0.26).
He Xiaopeng, the Chairman and CEO of XPeng, expressed optimism about the future. He announced that the company’s first production model built on XPENG’s next-generation technology architecture, SEPA2.0, called the G6, would be officially launched in June 2023. He anticipates that the G6 will become one of the most popular and best-selling models in China, which is targeting a price range of RMB200,000 to RMB300,000.
Regarding the outlook for the second quarter, XPeng expects vehicle deliveries of 21,000 to 22,000 units, representing a year-on-year decrease of 36.1% to 39.0%. The company also forecasts revenue in the range of RMB4.5 billion ($657.7 million) to RMB4.7 billion ($686.9 million) for the second quarter, reflecting a year-on-year decrease of 36.8% to 39.5%. These projections fall below the consensus estimate of $1 billion.
During intraday trading the company’s stock is down almost 10 percent on reaction to the earnings release.
XPEV Stock Forecast & Analysis
According to the Xpeng Inc stock forecast provided by 14 analysts, the average analyst target price for Xpeng Inc is USD 10.41 over the next 12 months. This indicates a potential upside for the stock. The average analyst rating for Xpeng Inc is “Buy,” suggesting positive sentiment among analysts.
Stock Target Advisor, an independent stock analysis platform, holds a bearish outlook on Xpeng Inc. Their analysis is based on 3 positive signals and 8 negative signals, indicating a more cautious view of the stock’s prospects.
At the last closing, Xpeng Inc’s stock price was USD 9.11, which is lower than both the average analyst target price and the previous week’s closing price. Over the past week, Xpeng Inc’s stock price has experienced a decrease of -4.21%, and over the past month, it has declined by -1.51%. Looking back over the last year, the stock has seen a significant decrease of -58.55%.