Key takeaways
- XPeng delivered more electric vehicles in the third quarter, but higher costs led to a larger loss in the period.
- The Chinese company’s results were affected by a large increase in the cost of sales and inventory write-downs.
- XPeng’s ADRs were trading well below their all-time high shortly after the company went public in the United States three years ago.
XPeng (XPEV) American Depositary Receipts (ADR) fell before paring losses in early trading on Wednesday after the Chinese electric vehicle (EV) maker reported its losses rose 39% even as it sold more cars .
XPeng posted a third-quarter fiscal 2023 loss of 3.89 billion Chinese yuan ($530 million), down from 2.8 billion yuan ($390 million) in the previous quarter. Revenue rose 25% from a year earlier to 8.53 billion yuan ($1.17 billion), missing estimates.
The company noted that cost of sales increased 48.4% from 2022 to 8.76 billion yuan ($1.2 billion) due to higher vehicle deliveries and inventory write-downs.
XPeng delivered 40,008 electric vehicles in the period, 72.4% more than in the second quarter. The company expects between 59,500 and 63,500 deliveries in the current quarter, well above forecasts.
XPeng co-president Hongdi Brian Gu said the company expects even higher free cash flow this quarter, “marking the starting point of our journey toward scalable long-term profitability.” CEO He Xiaopeng added that the business changes XPeng made earlier this year “will produce more positive results in 2024 and beyond.”
XPeng’s ADRs were trading well below their all-time high reached shortly after the company began trading publicly in the US in August 2020.
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