Xpeng Inc. - Share price rise despite unconvincing results and forecasts?

In my opinion, the results were unconvincing, and forecasts weren't that upbeat.

Despite that, share prices rallied.

Here's why I think so

In a period where grabbing market share is important, total deliveries play an important role.

As for XPeng's deliveries, they have been on a 2 consecutive slidedown.

On top of sliding delivery numbers, the financials weren't that great either.

Vehicle sales are down by -43.1% YoY and -25.3% QoQ.

Vehicle margins are also eroded, dropping -5.2pts YoY and -5.9pts QoQ.

The lower sales and margins exacerbated the total revenue, which is down by -40% YoY

As the gross margin is also down, we can safely deduce that selling prices were cut to maintain or encourage sales, which did not grow.

Whatever reasons dragging down Xpeng seem to have not alleviated when they provided their Q1'23 guidance.

Deliveries continued to be between 18,000 and 19,000, representing another YoY decrease of -45%- -48%.

And revenue will continue to drop to between RMB 4.0 billion and RMB 4.2 billion. That's another YoY drop of -43.7% - -46.3%.

Are you positive about Xpeng?

DISCLAIMER
The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.

No warranty is made with respect to the accuracy, adequacy, reliability, suitability, applicability, or completeness of the information contained. The author disclaims any reward or responsibility for any gains or losses arising from the direct and indirect use & application of any contents of the article/report/written material