XPeng Q2 Earnings: 30.2% Deliveries Growth, Margin Boost From Volkswagen Partnership, Q3 Outlook And More

Chinese EV maker XPeng Inc (NYSE: XPEV) reported fiscal second-quarter sales growth of 60.2% year-on-year, to 8.11 billion Chinese Yuan ($1.12 billion), missing the analyst consensus estimate of 8.21 billion Chinese Yuan ($1.13 billion). Total revenues increased 23.9% sequentially.

Adjusted net loss per ADS of (1.29) Chinese Yuan missed the analyst consensus loss estimate of (1.26) Chinese Yuan. In USD terms, the adjusted earnings per ADS was a loss of 18 cents, which is in line with the consensus.

Also Read: China's Cash-for-Clunkers Program Could Drive EV Sales to 10 Million in 2024, Boosting NIO, XPeng, and Li Auto Stocks

The Tesla Inc TSLA rival's quarterly vehicle deliveries increased 30.2% year-on-year to 30,207. 

XPeng's physical sales network had 611 stores, covering 185 cities as of June 30, 2024. XPeng's self-operated charging station network reached 1,298 stations as of June 30, 2024.

Revenues from vehicle sales increased 54.1% Y/Y to $0.94 billion. Gross margin was 14.0% versus (3.9)% a year ago. Vehicle margin was 6.4% versus (8.6)% a year ago, primarily attributable to the cost reduction and the improvement in the model product mix. 

Operating loss for the quarter was $(0.22) billion. The company held $5.14 billion in cash and equivalents as of June 30, 2024.

"Starting from the launch of MONA M03 in August, we are about to enter into a strong product cycle. In the next 3 years, we will have a large number of new models and facelift versions in the pipeline for market launch," said Mr. Xiaopeng He, Chairman and CEO of XPeng. 

"With cost reduction through technical improvement and revenues from technical collaboration in our strategic partnership with Volkswagen, our gross profit margin in the second quarter of 2024 has further increased to 14.0%," said Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPENG. 

Outlook: XPeng expects third-quarter vehicle deliveries of 41,000–45,000, up 2.5%–12.5% year-on-year.

The company expects second-quarter revenue of 9.1 billion Chinese Yuan–9.8 billion Chinese Yuan, representing a year-on-year increase of 6.7%–14.9%, versus the consensus of 10.50 billion Chinese Yuan.

XPeng stock plunged over 56% in the last 12 months as it strives against a domestic price war coupled with U.S. and EU protectionist tariffs.

Price Action: At the last check on Tuesday, XPEV stock traded higher by 0.28% to $7.22 premarket.

Image by Robert Way via Shutterstock