Shares of China's EV maker XPeng tumble on cautious Q4 revenue guidance
Chinese electric vehicle maker XPeng (XPEV) projected fourth-quarter revenue below analyst expectations on Monday, as a prolonged price war and intensifying competition in China’s EV market threaten growth.
XPeng’s U.S.-listed shares, which have more than doubled this year, fell nearly 4% in premarket trading, News.Az reports, citing Reuters.
The cautious outlook comes even as XPeng and rival NIO (NIO) reported record deliveries in October, while Tesla’s (TSLA) China sales fell to a three-year low. The contrast highlights the uneven effects of a fierce price war that has weighed on profitability across China’s crowded electric vehicle sector.
XPeng expects fourth-quarter revenue between 21.5 billion yuan ($3.03 billion) and 23 billion yuan, below analysts' average estimate of 26 billion yuan, according to data compiled by LSEG.
"Since the launch of the mid-to-low-end Mona 03 last year, combined with reduced investment in intelligent driving, XPeng has lost its brand appeal in models priced above 200,000 yuan," according to Third Bridge analyst Rosalie Chen.
The Mona M03, XPeng’s first model under a new mass-market brand built with ride-hailing giant DiDi (DIDIY), is central to the automaker’s push into China’s more affordable EV segment.
At an AI Day event earlier this month, XPeng unveiled work on future consumer-facing "flying car" concepts and humanoid robots aimed at factory and warehouse uses. The long-term projects demand heavy research and development investment that could further pressure near-term earnings.
For the third quarter, XPeng reported revenue of 20.38 billion yuan, in line with expectations, driven by a 149.3% year-on-year jump in vehicle deliveries. XPeng expects vehicle deliveries to grow between 36.6% to 44.3% year-on-year.
The company's net loss narrowed to 380.9 million yuan from 1.81 billion yuan a year earlier.
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