Xpeng suffered 12% loss, it reported a net loss of 2.7 billion Chinese yuan
According to Xpeng, the launch of the G9 SUV in September and the introduction of two additional vehicles in 2023 will support a growth cycle.
The Hong Kong-listed shares of Chinese electric car manufacturer Xpeng fell more than 12% on Wednesday after it reported a larger-than-anticipated loss for the second quarter and lukewarm delivery forecasts. The net loss reported by Xpeng on Tuesday was larger than the 1.6 billion yuan average estimate from Refinitiv, coming in at 2.7 billion Chinese yuan ($403.2 million).
The company, which is based in Guangzhou, China, also announced that it expects to deliver between 29,000 and 31,000 electric vehicles in the third quarter, representing an increase of 13% to 20.8% compared to the same period last year. That guidance disappointed the market.
“Well, the second quarter’s results weren’t too horrible. The revenue was even marginally better than what we had anticipated. On Wednesday’s broadcast of CNBC’s “Street Signs Asia,” Jiong Shao, an analyst at Barclays, stated that the earnings, or I should say loss, were narrower than what we anticipated. According to Xpeng President Brian Gu, the industry is getting ready for a “very quiet season,” and “traffic in the stores is fewer than what we’ve witnessed before due (of the) post-COVID circumstances,” he added.
In the second quarter of the year, Covid-19 experienced a comeback in China. As a result of the government’s response, major cities countrywide, including Shanghai, the country’s financial hub, were shut down.