XPeng Q4 Highlights: Registers 47% Decline In Deliveries, Expects Q1 Deliveries Of 18K-19K, Updates On Cost Control Measures - XPeng (NYSE:XPEV)

XPeng Inc XPEV reported a fourth-quarter FY22 sales decline of 39.9% year-on-year, to RMB5.14 billion ($745.28 million), missing the consensus of $834.05 million.
The Tesla Inc TSLA rival's quarterly vehicle deliveries decreased 46.8% Y/Y to 22,204. Deliveries of the Flagship G9 SUVs were 6,189 in Q4.
Revenues from vehicle sales decreased 43.1% Y/Y, mainly attributable to lower vehicle deliveries for the G3i and P7.
Gross margin contracted by 330 basis points to 8.7%. Vehicle margin contracted 520 basis points to 5.7%, mainly attributable to increased sales promotions.
Operating loss for the quarter was RMB(2.52) billion or $(0.36) billion versus a loss of RMB(2.43) billion last year.
The company held $5.55 billion in cash and equivalents.
Non-GAAP net loss per ADS was RMB(2.57) or $(0.37), which missed the consensus loss of $(0.36).
Full-year vehicle deliveries reached 120,757, up by 23.0% Y/Y.
Xpeng reportedly said the cost of its self-driving cars would decrease by over 50% from 2023 - 2024, and the hardware price, including the power system, will likely drop by around 25%.
The EV maker proposes to make its entire self-driving system a standard feature instead of selling it as an add-on, said its Chair, He Xiaopeng, on Friday at the Q4 earnings conference.
"We have comprehensively reviewed our strategy and took decisive actions to execute our organisational restructuring and strengthen our capabilities where necessary," said Mr. He Xiaopeng, Chairman and CEO of XPENG. "From 2023 to 2027, the industry will move from a phase of rapid EV penetration to an era of accelerated disruption by smart technologies, and we are confident that we will further strengthen our leadership in smart EV technologies."
"With the optimization of our product portfolio and the significant improvement of our marketing capabilities, we will resume growth in our sales and market share," said Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPENG. "In the meantime, we will improve operational efficiency across our business processes and continue to reduce costs."
Outlook: XPeng sees Q1 vehicle deliveries of 18,000 – 19,000, down 45.0% - 47.9% Y/Y.
The company expects Q1 revenue of RMB4.0 billion ($579.95 million) - RMB4.2 billion ($608.94 million), representing a Y/Y decrease of 43.7% - 46.3%, below the consensus of $882.99 million.
Price Action: XPEV shares are trading lower by 3.36% at $8.05 in premarket on the last check Friday.
Photo Via Company

Market News and Data brought to you by Benzinga APIs