XPEV: Falling Short of Expectations?
In high hopes of a turnaround for the Chinese electric vehicle maker, the company's latest earnings fell short.
Bad:
- Total vehicle deliveries of 22,204 (down 46.8% YOY)
- Gross margin of 8.7% (vs 12% in 4Q21)
- Net loss per share of $0.20 (vs $0.12 in 4Q21)
- Total vehicle deliveries of 22,204 (down 46.8% YOY)
- Gross margin of 8.7% (vs 12% in 4Q21)
- Net loss per share of $0.20 (vs $0.12 in 4Q21)
Good:
- Expansion of self-operated charging station network to 1,014 stations
- Launch of the new P7i Sports Sedan
- Expansion of self-operated charging station network to 1,014 stations
- Launch of the new P7i Sports Sedan
Management Discussion:
"We have comprehensively reviewed our strategy and took decisive actions to execute our organizational restructuring,” - CEO He Xiaopeng
"We have comprehensively reviewed our strategy and took decisive actions to execute our organizational restructuring,” - CEO He Xiaopeng
"From 2023 to 2027, the industry will move from a phase of rapid EV penetration to an era of accelerated disruption by smart technologies, and we are confident that we will further strengthen our leadership in smart EV technologies.”
Conclusion
Xpeng's vehicles haven't been selling as well as investors would have hoped.
The G9 starts at about $46,000, a similar price point to a base-level Tesla Model, which started out at $43,000.
Now, the same Model Y starts at about $39,000.
Management seems to suggest that they are cost-cutting and restructuring, which does not seem promising.
As investors, competing based on price is something we do not wish to see.
Can the company differentiate itself with the release of the new sports sedan or other products?
Only time will tell.
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MonkeyGee : wow, this is super old news. next earnings is coming out in a few weeks
MonkeyGee : u should sell