XPeng Q3 Revenue Beat, Strong Q4 Guidance Lift EV Stock

XPeng, Inc. XPEV reported third-quarter revenues that exceeded expectations but the loss per share trailed expectations. The company's gross margins expanded both sequentially and year-over-year.

The Guangzhou-based EV startup issued upbeat delivery and revenue forecasts for the fourth quarter.

XPeng's Key Q3 Metrics: XPeng reported third-quarter revenues of $887.7 million, a 187.4% increase from a year-ago and a 52.1% jump from the previous quarter. Vehicle sales accounted for about 95.5% of the total revenues.

The revenues exceeded the consensus estimate of $790.19 million.

The non-GAAP loss per ADS came in at 1.77 yuan (27 cents), narrower than the year-ago's loss of 2.16 per ADS but wider than the second quarter's loss of 1.38 per ADS. Each ADS represents two ordinary XPeng shares.

Analysts, on average, had estimated a loss of 18 cents per share.

The gross margin expanded from 11.9% in the second quarter to 14.4%. A year ago, the gross margin was at 4.6%.

"In the third quarter, we continued record-setting growth with the highest vehicle deliveries among China's startup new energy vehicle automakers. This outperformance testifies to the market's recognition of the differentiated value our vertically integrated in-house developed software and hardware bring to our vehicles," said He Xiaopeng, chairman and CEO of XPeng.

As of Sept. 30, 2021, the company had cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits of $7.0394 billion.

Rival Nio, Inc. NIO reported in early November forecast-beating results for the third quarter, with the upside helped by EV credits.

Related Link: Nio Vs. XPeng Vs. Li Auto: How October EV Deliveries Stack Up

XPeng's Q3 Deliveries: XPeng delivered 25,666 vehicles for the third quarter, representing a record quarterly number, as previously reported. P7 deliveries for the quarter also reached a record.

Almost all of the P7s delivered during the quarter support XPeng's latest advanced driver assistance systems.

In October, XPeng delivered 10,138 vehicles, representing a 233% year-over-year increase. The October deliveries consisted of 6,044 P7 sedans and 3,657 G3 and G3i smart SUVs. The P5 sedan launched in September saw 437 deliveries in October and a strong order backlog.

XPeng's Q4 Outlook: For the fourth quarter, XPeng expects deliveries of 34,500-36,500 vehicles, up about 166%-182% from the year-ago quarter. In comparison, competitor Nio guided fourth-quarter deliveries of 23,500-25,500 units.

XPeng guided revenues to 7.1 billion yuan-7.5 billion yuan ($1.11 billion- $1.17 billion), 149%-163% higher than a year ago.

The consensus estimate call for the fourth quarter calls for revenues of $903.76 million.

XPEV Price Action: In premarket trading, XPeng shares were advancing 3.48% to $49.04. 

Related Link: EV Week In Review: Musk Tapers Stake Sale, Apple Car Chatter Resurfaces, XPeng Unveils New SUV, Rivian, Lucid Caught Up In Irrational Exuberance And More

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