Why XPeng (XPEV) Shares Are Gaining Today - XPeng (NYSE:XPEV)

XPeng Inc XPEV reported third-quarter FY22 sales growth of 19.3% year-on-year, to RMB6.82 billion ($0.96 billion), missing the consensus of $1.01 billion.
The Tesla Inc TSLA rival's quarterly vehicle deliveries increased 15% Y/Y to 29,570.
P7 smart sports sedan deliveries fell 15% to 16,776, and P5 smart family sedan deliveries were 8,703.
The gross margin contracted by 90 basis points to 13.5%. Vehicle margin contracted 200 basis points to 11.6%, mainly attributable to the battery cost increase.
The operating loss for the quarter was RMB(2.18) billion or $(0.31) billion versus a loss of RMB(1.80) billion last year.
The company held $5.64 billion in cash and equivalents.
Non-GAAP net loss per ADS was RMB(2.59) or $(0.36) was in line with the consensus.
Total deliveries reached 5,101 vehicles in October 2022 versus 10,138 in October 2021.
"We will implement prudent cost control initiatives and improve operational efficiency," said Dr. Hongdi Brian Gu, Honorary Vice Chairman and President of XPENG. "As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price."
Outlook: XPeng sees Q4 vehicle deliveries of 20,000 – 21,000, down 49.7% - 52.1% Y/Y.
The company expects Q4 revenue of RMB4.8 billion - RMB5.1 billion, representing a Y/Y decrease of 40.4% - 43.9%.
Price Action: XPEV shares are trading higher by 12.94% at $8.29 in premarket on the last check Wednesday.
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Xpeng Clocks 15% Q3 Deliveries Growth, Expects Q4 Deliveries Of 20K-21K, Implements Cost Control Initiatives