XPeng sinks, following 1Q miss and weak forecast

Shares of Chinese electric automaker Xpeng Inc. (HK:) are down more than 5% in pre-market trading on Wednesday following its disappointing that fell short of expectations.

The automaker reported a RMB 2.57 loss per adjusted diluted share, missing the consensus of (RMB 1.92). Meanwhile, total revenue was reported at RMB 4.03 billion ($0.59B), missing consensus of RMB 5.15B, representing a decrease of 21.5% from the fourth quarter of 2022.

Total deliveries in the quarter reached 18,230, down about 17.9% from Q1 2022. Quarterly gross margin was 1.7%, down 7% sequentially.

“During the first quarter of 2023, I took actions to make changes to our strategy, organizational structure and senior management team decisively. I am fully confident in taking our Company into a virtuous cycle driving product sales growth, team morale, customer satisfaction and brand reputation over the next few quarters,” CEO He Xiaopeng said. “G6, the first production model built on XPENG’s next-generation technology architecture SEPA2.0, will be officially launched in June 2023. I believe the G6 will emerge as one of the most popular, best-selling models in China’s NEV SUV market segment with a price range between RMB 200,000 to RMB 300,000.”

Xpeng (NYSE:) announced that they delivered 7,079 vehicles in April 2023 and are aiming for 21,000 to 22,000 deliveries in 2Q. Compared to last year, that’s a big drop of around 36.1% to 39%. The projected total revenues for the same period are expected to be between RMB 4.5B ($638.3M) and RMB 4.7B ($666.7M), which is a significant decrease of approximately 36.8% to 39.5% compared to last year. It’s way below what analysts expected, as they were anticipating over $1B in revenue for the year.

Shares of XPEV are down 5.93% in pre-market trading on Wednesday.