Xpeng Shares Skyrocket Following Positive Q2 Delivery Forecast
Chinese electric vehicle (EV) manufacturer, Xpeng Inc. (NYSE:XPEV), saw a significant surge in its shares following a promising forecast for Q2 deliveries and an improved profit margin, as reported by CNBC on Wednesday.
The company’s Hong Kong-listed shares rose over 13% in Wednesday’s morning trade, while its U.S.-listed shares climbed nearly 6% in Tuesday’s U.S. trade after the Q1 results were announced.
Xpeng reported a 5.5% increase in vehicle margin in Q1, a significant improvement from the negative 2.5% in the previous quarter. The company also forecasted Q2 deliveries of 29,000 to 32,000 cars, marking a year-on-year increase of at least 25%.
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Following the earnings release, Nomura analysts stated they are reviewing their estimates for Xpeng. The report noted, “Overall, we see XPENG forging ahead with its business plans, and believe that it may enjoy some development ahead.”
As part of its strategy to stay competitive in China’s EV market, Xpeng is expanding its product lineup with a lower-cost vehicle brand, Mona. The first Mona car, an electric sedan priced below 200,000 yuan ($27,890), is set to be released in June and begin mass deliveries in Q3.
Xpeng also attributed a significant portion of its services revenue to its partnership with German automaker Volkswagen. The services segment overall surged by 93.1% year-on-year to 1 billion yuan in Q1.
The company is planning to establish partnerships with auto dealership groups in Western Europe, Southeast Asia, the Middle East, and Australia to open new stores, aiming to expand its sales network to over 20 countries.
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