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“Overall we see big momentum continuing into March,” Xpeng Vice Chairman and President Brian Gu told Yahoo Finance, adding that momentum is continuing in deliveries. “So we have very good hopes that 2021 will again be robust.”
Xpeng said Monday that sales rose 345.5% year-over-year to RMB 2,851.4 million. Total deliveries increased 302.9% to 12,964. Xpeng reported a RMB 787.4 million loss versus a RMB 1,097.1 million loss last year, as vehicle margins improved.
Shares fell 3% in pre-market trading Monday.
Xpeng is among others in China’s hot EV space to see its stock price come under pressure this year amid a broader pullback in tech stocks. Shares of Nio and Li Auto are down 21% and 22%, respectively, on the year. Tesla’s stock is lower by 16%.
“Well I think it is quite significant,” Gu said when asked if he was surprised by the sell-offs. “I think obviously it’s coupled with the overall market that’s hitting the high growth and high value stocks in other sectors as well.”
The company’s guidance suggests demand will remain strong in the near-term.
Xpeng sees first quarter deliveries rising 450% year-over-year to 12,500 vehicles. Revenues are expected to increase 533% from a year ago. The company didn’t provide bottom line estimates for the quarter, but will likely post another net loss as it ramps up manufacturing, invests in R&D and builds out a new manufacturing plant set to open in 2022.
The EV maker — which JPMorgan analysts estimate could grab 8% of China’s electric car market by 2025 —has two models in the Chinese electric car market. They have gained notoriety in an increasingly crowded market for their tech-forward infotainment systems and autonomous technology.
Xpeng’s third model is expected to launch in the second quarter, taking aim at smaller sedans such as the Toyota Camry. Xpeng’s XPilot 3.0 autonomous driving technology recently became available, allowing such actions as hands-free lane switching and navigated speed control.