Shares of XPeng (XPEV) gained in pre-market trading after the company reported strong results. The Chinese EV major reported adjusted earnings of $0.23, or RMB1.62 per American Depositary Share (ADS). Analysts were expecting a loss of $0.29 per share.
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The company’s revenues increased by 18.4% year-over-year to RMB10.10 billion ($1.44 billion) in the third quarter, surpassing Street estimates of $1.39 billion. In addition, XPEV has delivered 122,478 vehicles year-to-date, with 23,917 vehicles delivered in October.
XPEV’s Management Comments on the Results
Xiaopeng He, Chairman and CEO of XPeng, commented, “Our core competencies and execution capabilities have been significantly transformed. The successful launch of M03 and P7+ marks the beginning of a strong growth cycle underpinned by our major product cycles.”
The company’s management also stated that its gross margin reached a “historical high at 15.3%” through cost reductions and significant volume growth quarter-over-quarter.
XPEV Issues Q4 Outlook
Looking ahead, the company expects its vehicle deliveries to increase by 44.6% to 51.3%, reaching between 87,000 and 91,000 in the fourth quarter. XPEV expects to generate total revenues between RMB15.3 billion and RMB16.2 billion in Q4.
Is XPEV Stock a Good Buy?
Analysts remain cautiously optimistic about XPEV stock, with a Moderate Buy consensus rating based on seven Buys, three Holds, and one Sell. Over the past year, XPEV has increased by more than 25%, and the average XPEV price target of $11.73 implies a downside potential of 9.8% from current levels. These analyst ratings are likely to change following XPEV’s results today.
