Xpeng Q2 2024 reported net loss -54.12% YoY share price down >5%
$XPeng (XPEV.US)$ $Tesla (TSLA.US)$ $BYD COMPANY (01211.HK)$ $NIO Inc (NIO.US)$ Xpeng stock took a dive of more than 5% after the release of Q2 2024 earnings call.
![Xpeng Q2 2024 reported net loss -54.12% YoY share price down >5%](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240821/1724183173221-random8716-101709443-android-org.jpeg/big?area=101&is_public=true)
Many people commented that despite the earnings "meet" expectations, the share price is not showing. I'll use the 2 articles to explain the earnings data is not as rosy as you think:
1) Revenue of RMB 8.11 billion ($1.12 billion) in Q2 2024 +60.2% YoY and +23.9% QoQ. The percentage growth looked impressive but is just a small player when compared with BYD and Tesla.
2) Gross margin was 14.0% in Q2 2024, compared to -3.9% in Q2 2023 and +12.9 in Q1 2024. This is still too low to cover operating expenses.
![Xpeng Q2 2024 reported net loss -54.12% YoY share price down >5%](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240821/1724182960503-random4017-101709443-android-org.jpeg/big?area=101&is_public=true)
3) As a result, Xpeng reported a net loss of RMB 1.28 billion in Q2 2024 -54.12% YoY and -6.08% QoQ. Xpeng continues to make losses on an operating basis, which includes operating expenses like R&D and SG&A.
![Xpeng Q2 2024 reported net loss -54.12% YoY share price down >5%](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240821/1724182961172-random7960-101709443-android-org.jpeg/big?area=101&is_public=true)
4) Xpeng's operating losses remain 'stuck' at the $180-$190 million mark.
![Xpeng Q2 2024 reported net loss -54.12% YoY share price down >5%](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240821/1724182961313-random44-101709443-android-org.png/big?area=101&is_public=true)
5) Xpeng does not provide cash flow statements! This is a red flag. Without cash flow statement, we can't precisely calculate free cash flow. However, by looking at Xpeng's balance sheet (not shown) we can see that there was a significant cash burn. The reduction was not caused by a paydown of debt.
![Xpeng Q2 2024 reported net loss -54.12% YoY share price down >5%](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240821/1724182961466-random9918-101709443-android-org.png/big?area=101&is_public=true)
Source:
$BYD COMPANY (01211.HK)$ $BYD Co. (BYDDF.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Tesla (TSLA.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Rivian Automotive (RIVN.US)$ $MERCEDES-BENZ GROUP AG (MBGAF.US)$ $TOYOTA MOTOR CORP (TOYOF.US)$ $GEELY AUTO (00175.HK)$ $Stellantis NV (STLA.US)$
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Silverbat : Hopeless! Without subsidies, already bankrupt!