5 Important Numbers From Xpeng’s Latest Quarter

Turning to Wall Street, XPEV has a Moderate Buy consensus rating based on six Buys and three Holds assigned in the past three months. The average XPeng stock price target is $47.40, implying 197.2% upside potential.

What’s more, it will be able to charge fast enough to get more than 100 miles of range in about 5 minutes—as long as the charger can deliver the electricity quickly enough. Yu expects the SUV to be a strong seller for two or three quarters. Advanced self-driving features have become a key selling point for the plethora of Chinese electric car companies in what has become a fiercely competitive market. Xpeng’s rivals including Nio and dotbig review Baidu’s EV company Jidu, are all developing such technology. The company’s management said that “higher marketing, promotional, and advertising expenses to support vehicle sales” were the culprits, as well as expenses related to the company’s sales network. If we take a look at the company’s deliveries on a sequential basis, the picture isn’t as rosy. Vehicle deliveries actually declined by 139 vehicles from the previous quarter.

Despite the company’s rising sales, the rate of growth in its expenses remains elevated, thereby contributing to its lack of profitability thus far. XPeng has delivered more than 90,000 vehicles in 2022, through August. That’s up from about 46,000 vehicles delivered in the first eight months of 2021. Growth looks solid, Forex but higher interest rates, Covid-19 lockdowns in China, and Chinese/American geopolitical tensions have all weighed on investors sentiment. Yu expects the SUV price to come in around 400,000 yuan, or about $58,000. The G9 SUV will offer the company’s latest computing platform and driver-assistance software.

Daily Ratings & News For Xpeng

However, there’s more to the story with XPeng than one good month of EV deliveries. Not long ago, the automaker issued forward vehicle delivery guidance that fell far short of the experts’ consensus forecast. The company expects deliveries in the third quarter to fall to between 29,000 and 31,000. That would still be a year-over-year increase, but the further sequential weakness suggests that https://dotbig.com/ economic conditions in China are deteriorating. Similarly, revenue of between 6.8 billion and 7.2 billion renminbi aren’t making growth investors particularly happy. Shares of NIO Inc. bounced into positive territory Thursday, again, to buck weakness in rival China-based electric vehicle makers, after J.P. Morgan analyst Nick YC Lai suggested they may be “bottoming out.” The stock was…

Xpeng Stock

Advisors Asset Management Inc. now owns 12,361 shares of the company’s stock worth $341,000 after buying an additional 3,995 shares during the period. 25.15% of the stock is owned by institutional investors and hedge funds. Nomura Instinet restated a “neutral” rating and set a $36.30 price objective on shares of XPeng in a report XPEV stock price today on Friday, July 1st. Macquarie downgraded XPeng from an “outperform” rating to a “neutral” rating and set a $25.00 target price on the stock. Barclays downgraded XPeng from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $30.00 to $22.00 in a report on Tuesday, August 23rd.

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The result is already having an impact on the company’s financial figures and vehicle deliveries. XPeng’s management said that vehicle deliveries for the third quarter will be in the range of 29,000 to 31,000, which represents year-over-year growth of just 17%. XPeng’s vehicle margin — which the company defines as gross profit of vehicle sales as a percentage of vehicle sales revenue — slid in the quarter to 9.1%, down from 11% in the year-ago quarter. Rising vehicle costs were a problem for the company, including battery expenses. In the meantime, we expect the XPEV stock to continue underperforming, mainly due to the erratic geopolitical relationship between China and the US, as a result of the ongoing semiconductor war. Combined with China’s insistence on the Zero Covid Policy further disrupting the recovery of the global supply chain, we expect to see further headwinds ahead, with things unlikely to improve by the end of 2022. For FY2022, XPEV is expected to report revenues of $5.22B and net incomes of -$1.03B, representing YoY growth of 58.08% though a decline of -34.59%, respectively.

  • Looking ahead to 2022’s third quarter, XPeng expects to deliver between 29,000 and 31,000 vehicles.
  • Advanced self-driving features have become a key selling point for the plethora of Chinese electric car companies in what has become a fiercely competitive market.
  • Not long ago, the automaker issued forward vehicle delivery guidance that fell far short of the experts’ consensus forecast.
  • Even after adjusting for share-based compensation, XPeng lost $368 million in the second quarter of 2022, more than double its loss from the previous year’s period.
  • Investors keen on adding XPEV may potentially see single digit stock prices by November in our opinion – allowing for a rather attractive but speculative entry point for long-term investing through the end of the decade.
  • After we examine XPeng’s recent monthly vehicle delivery report, you may be even more emboldened to buy the stock.

In FQ2’22, XPEV reported revenues of $1.1B and gross margins of 10.9%, representing YoY growth of 90.52% though a decline of a percentage point, respectively, with the latter dotbig attributed to rising battery costs. Xpeng is trialing the City Navigation Guided Pilot with select users of its P5 sedan in the southern Chinese city of Guangzhou.

Xpeng Shares Slide After Disappointing Results, Sales Guidance

Only time will tell, though we are not hopeful for a stock recovery then. We also think these would lead to XPEV’s improved stock performances then, underscoring the stock’s massive potential for speculative multi-fold returns through the next decade, in our opinion. dotbig website The continued decline in profitability is mostly attributed to XPEV’s elevated operating expenses of $441.6M in FQ2’22, representing an increase of 50.34% YoY. These expenses still accounted for 39.8% of its revenues and 365.6% of its gross profits then.

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That’s because in the second quarter of 2021 XPeng wasn’t selling its P5 sedan. The company only began selling the P5 in September, so the second-quarter 2021 sales don’t include any of the vehicle’s revenue. https://dotbig.com/markets/stocks/XPEV/ XPeng’s sales soared 97% from the year-ago quarter to $1.1 billion. That strong growth would normally make investors very happy, but the huge increase comes with a bit of an asterisk next to it.

Wall Street Analysts Forecast Growth

Vehicle deliveries of 34,422 for the period were up 98% year over year. However, the more recent trends for XPeng have been less favorable. The report marked the second quarter in a row that vehicle deliveries fell from the prior three months, after having peaked at 41,751 in the fourth quarter of 2021. Combined with the August CPI of 8.3% potentially triggering another 75 basis point hike in interest rates nasdaq XPEV for September 2022, we expect to see the stock market and, consequently, XPEV, continue underperforming in the short-term. Notably, the S&P 500 Index has plunged by -19.25% in the three quarters of 2022, notably highlighting the overly bearish market. The entire EV industry is suffering from supply chain shortages and rising costs, but XPeng’s problems are being compounded by China’s strict COVID lockdowns.

For the second quarter of 2022, XPeng expects to deliver 31,000 to 34,000 vehicles, which would represent a year-over-year increase of around 78.2% to 95.4%. The numbers show that XPeng is firing on all cylinders, but investors still dumped their shares. However, this could be a chance to seize a prime buying opportunity with an EV-market standout. Notably, XPeng delivered https://www.forexlive.com/ 34,422 vehicles during the second quarter. Therefore, XPeng’s expected range for Q3 falls below the actual EV delivery result from the second quarter. Looking ahead to 2022’s third quarter, XPeng expects to deliver between 29,000 and 31,000 vehicles. That might sound like an impressive range, but as always, digging deeper into the data will reveal the bigger picture.

Any posted results should be considered in the context of the aforementioned challenges. Just because the investing community is disappointed with XPeng’s results, it doesn’t mean that you have to be disappointed. The optimism is now in the rear-view mirror as was recently in the low $20s. Sure, it can be scary to invest in a stock that has lost 50% of its value in a matter of months. However, investors should consider all of the circumstances that may have led to the downfall of XPeng stock. A true contrarian is willing to jump into a trade during peak pessimism, especially when a stock price doesn’t seem to reflect the intrinsic value of a company. It’s not emotionally easy to do this, but this is an essential part of the “buy low, sell high” strategy – and right now, you can “buy low” with XPeng stock.

Naturally, this has put negative pressure on many China-based businesses’ bottom lines. TipRanks is a comprehensive investing tool that allows private investors and day traders to see the measured performance of anyone who provides financial advice. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.