On Wednesday, Aug. 24, Chinese electric vehicle maker Xpeng reported a wider-than-expected loss for the second quarter of 2022 after its shares tanked more than 12% in Hong Kong.
The automaker reported a net loss of 2.7 billion Chinese yuan or $403.2 million, wider than the expected net loss of 1.6 billion Chinese yuan or $233 billion.
Xpeng also reported that it expects to deliver between 29,000 to 31,000 electric vehicles in the third quarter of 2022.
Xpeng Suffers Decline in Shares
Barclays analyst Jiong Shao told CNBC that the second quarter results of Xpeng were not bad at all, and the revenue was even better than expected. As for the earnings, Xpeng's losses were narrower than what they expected.
Shao added that the problem was the forward Q3 2022 delivery guidance, which is 40% below analysts' prior estimates.
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On Tuesday, Aug. 23, Xpeng President Brian Gu said that the guidance reflects that the industry is entering a slow season and that traffic in the stores are less than what the company had seen before because of the post-COVID-19 situation.
In the second quarter of 2022, China saw a spike in COVID-19 cases. Authorities responded by locking down major cities across the country, including Shanghai and Beijing.
According to Market Watch, Citi analysts lowered their 2022-2024 sales forecasts for Xpeng, citing multiple uncertainties, including consumption downgrade, supply chain challenges, and the pandemic.
Xpeng's New Models
Despite the disappointing results of its Q2 shares, Xpeng said that its new electric sports utility vehicle called the G9 is still on track for its launch in September, with deliveries of the vehicle scheduled in October.
Gu said that Xpeng hopes monthly deliveries of the G9 will exceed those of its flagship P7 sedan in 2023. In July, the automaker delivered 6,397 P7 vehicles in China and Hong Kong.
The company also plans to launch two new models in 2023.
Gu added that the new cars, along with the start of deliveries for the G9 and seasonal strength in the fourth quarter of 2022, should help the company grow.
Gu believes there is a strong chance that the company will go through a growth cycle, led by the new product launches.
Xpeng G9 Features
Xpeng's G9 is the most advanced electric vehicle to date.
It is also the first to be designed from the ground up for both the Chinese and international markets to be compliant with the E-NCAP and C-NCAP five-star safety design standards, according to Electrek.
The G9 would feature Xpeng's ultra-advanced X-PILOT 4.0 ADAS, which means it will be capable of full-scenario-assisted driving through its Navigation Guided Pilot or NGP.
The vehicle is equipped with a new powertrain system, and it can gather up to 200km of range in a little as five minutes of charging.
Xpeng has not yet revealed anything regarding the interior of the G9 yet and its cost. However, it may do so in the coming months.
According to Electrek, reservations for the G9 model are now open and have reached nearly 23,000 orders.
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Written by Sophie Webster
