Why Analyst Expects Tesla Rival Xpeng To Deliver Solid Q4 Earnings On Monday

U.S.-listed Chinese electric vehicles maker Xpeng Inc XPEV is expected to deliver a “solid” quarter when it reports fourth-quarter earnings before the bell on Monday, CnEVpost reported, citing Deutsche Bank analyst Edison Yu.

What Happened: The analyst has maintained a 'buy' rating on the stock but lowered the price target to $55 a share from $57.

"We expect a mostly solid quarter, supported by upside from vehicle deliveries," the report said, citing the Deutsche Bank research note.

Xpeng delivered 41,751 vehicles in the fourth quarter, well above its prior forecast range of about 34,500 to 36,500 units.

It had also said it expects total revenue to be about $1.14 billion to $1.2 billion (RMB 7.1 billion to RMB 7.5 billion) in the fourth quarter.

DB expects Xpeng revenue to be $1.37 billion (RMB 8.59 billion) in the fourth quarter.

Analyst consensus for Xpeng’s fourth-quarter revenue is $903.76 million, as per data from Benzinga Pro. 

Guangzhou, China-headquartered Xpeng competes with local rivals Nio Inc NIO, Li Auto Inc LI, Byd Co BYDDY, and global EV leader Tesla Inc TSLA.  

See Also: Tesla, Xpeng, Li Auto, Nio, BYD: How EV Prices Are Looking Like In China With Latest Hikes

DB’s 2022 Outlook On Xpeng: Deutsche Bank estimates Xpeng’s first-quarter deliveries to be about 34,500 units and has raised expectations for full-year deliveries to 205,000 units from 200,000 units. 

In 2023, it now estimates Xpeng will deliver 335,000 units, above its prior guidance of 310,000 units.

The analyst has lowered its full-year margin estimate to be 13.5% in 2022, from a prior 15.1%. 

Earlier this week, Xpeng announced price hikes in the range of $1,560 to $3,152 per unit.

Price Action: Xpeng stock closed 0.24% higher at $29 a share on Wednesday.

Photo courtesy: Xpeng