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XPeng (XPEV) Jumps 47% Despite Wider Q3 Loss & Muted Q4 View

XPeng Inc. XPEV incurred a loss per American Depositary Share (ADS) of 39 cents in the third quarter of 2022, wider than the year-ago loss of 29 cents amid higher manufacturing expenses due to supply chain snafus. This China-based electric vehicle (EV) maker posted revenues of $959.2 million, up 19.3% year over year, on improved deliveries. Shares of the company popped up more than 47% following the results.

Key Details

XPEV delivered 29,570 vehicles in the third quarter, up 15% year over year, including 25,479 sedans (including 16,776 P7 models and 8,703 P5 models) and 4,091 sedans. The revenues generated from vehicle sales amounted to $0.88 billion, rising 14.3% year over year. The increase in vehicle sales was mainly led by higher deliveries. Other sales amounted to $0.08 billion, up 124.1%.

The vehicle margin came in at 11.6% in the quarter under review, decreasing from 13.6% recorded in the corresponding quarter of 2021. Cost of sales shot up 20.4% to $0.83 billion amid commodity inflation. The gross margin in the reported quarter declined to 13.5% from 14.4%.

The research & development and selling, general & administrative costs were $0.21 billion and $0.23 billion, respectively, reflecting a year-over-year rise of 18.5% and 5.7%.

Cash/cash equivalents, restricted cash, short-term investments and time deposits totaled $5.64 billion as of Sep 30, 2022. The long-term debt was roughly $0.45 billion as of the same date.

For the fourth quarter, XPeng expects deliveries in the band of 20,000-21,000 vehicles, signaling a year-over-year decrease of 49.7-52.1%. Revenues are envisioned between RMB 4.8 and RMB 5.1 billion, indicating a year-over-year decline of 40.4-43.9%.

XPeng currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

How Did NIO Fare in Q3?

NIO Inc. NIO incurred a loss per ADS of 36 cents in the third quarter of 2022, wider than the year-ago loss of 28 cents amid higher operating expenses, despite improved deliveries. The company posted revenues of $1,827.8 million, up 32.6% year over year on robust deliveries. NIO delivered 31,607 vehicles in the third quarter, up 29.3% year over year, including 22,859 SUVs and 8,748 sedans.

For the fourth quarter, NIO expects deliveries in the band of 43,000-48,000 vehicles, signaling a year-over-year uptick of 71.8-91.7%. Revenues are envisioned between $2,442 million and $2,703 million, indicating a year-over-year increase of 75.4-94.2%.

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