Xpeng Earnings: First $1 billion quarter for Tesla’s rival EV startup, Nio. Xpeng stock rally

Exping (XPEV) reported stronger-than-expected fourth-quarter results on Monday, after electric vehicle prices rose due to higher material costs. also on monday, New (New) is supposed to deliver its highly anticipated ET7 electric car to customers in China. Xpeng and Nio shares are down in early trading.


ET7 is a direct competitor to Tesla (TSLA) Model S and Xpeng P7 in China.

Xpeng’s profit: a quarter of a billion dollars

Estimates: Wall Street expected Xpeng to lose 33 cents per ADR versus a loss of seven cents a year ago. According to FactSet, revenue was up 180% year-over-year to $1.223 billion. This would have represented a slowdown from the 199% increase in sales in the third quarter.

consequences: Xpeng reported a lower-than-expected loss of 24 cents per US deposit receipt, for both primary and diluted earnings. Revenue from auto sales rose 199%, to $1.28 billion, giving the company its first multibillion-dollar quarter. The number was 49.9% higher than third-quarter sales.

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Xpeng has already revealed that it sold 41,751 electric vehicles in the fourth quarter of 2021, easily beating its own target. That was up 222% year over year and also up sharply from the third quarter, despite the lack of auto chips. It expects deliveries in the first quarter of 33,500 to 34,000, which means deliveries in March are approximately 14,600. Xpeng delivered 6225 EVs in February, up 180% over the previous year but down sharply from 12,922 in January.

So far this year, Chinese startups EV Exping (XPEV) And the Lee Otto (LI) outpaced its rival Nio’s sales in January and February. Chinese electric car companies will announce March and first-quarter sales in the coming days.

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Write off fears hit Xpeng stock

XPEV stock is up 6.7%, and Nio is up 2.7% in premarket trading on Monday.

On Friday, Xpeng shares fell 7.6% and Nio fell 9.4%. Xpeng stock has fallen over the past year and is still well below the 50-day moving average without buy point vision. Li Auto and China EV giant BYD (BYDDF), which may also report next week, each gave up 5%. Tesla pared its losses to 0.3% on Friday as it works on a buy point of 1208.10.

In 2021, sales of electric cars in China boomed, making it once again the world’s largest market for electric cars.

Although electric China sales are still strong so far in 2022, there are other concerns hitting Xpeng and its peers. It fell on Friday after microblogging service Weibo landed on the list of Chinese companies at risk of delisting from US stock exchanges.

There are other concerns.

Xpeng, along with Tesla and others, raised electric vehicle prices in March due to higher material prices. Meanwhile, the global chip shortage continues, and the Omicron sub-variable is now on the rise in parts of China, including major manufacturing centers.

Then there’s the ET7, Nio’s first electric sedan and high-tech long-range electric vehicle, which arrives on Monday. It will soon be followed by the smaller ET5. The new Nio EV will not only challenge Tesla’s Model S and Model 3 in China, but also Xpeng’s P7 and P5.

not less, Volkswagen (VWAGY) said in March it would make China a bigger priority as the Ukraine war criticized Europe’s auto supply chain.

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