Xpeng (XPEV) Gains on Q4 Earnings, Estimates 150% Quarterly Growth

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Ollie Martin
Updated: 28 Mar 2022

Key points:

  • XPEV stock gained 3.5% premarket on better-than-expected Q4 earnings
  • A loss of $0.22 per share beat analyst expectations of a loss of $0.33
  • The company expects to delivery nearly 34,000 vehicles in Q1, translating to 150% growth YOY

Xpeng stock gained around 3.5% in Monday premarket trading after the flourishing Chinese EV maker posted its Q4 earnings. The Chinese EV landscape acts as somewhat of a blueprint for the burgeoning US market, with demand seemingly outweighing supply, with a solid infrastructure that beckons the transition. A few steps ahead of the US EV trend, investors often look to companies like Xpeng, Nio, and Li Auto for reliable growth metrics. 

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Xpeng is one of the larger names grappling for market share as manufacturers continue to be swamped by demand. The company has recently been deemed a favorite by analysts on the grounds of its market-leading infrastructure, strong demand for its P5 and P7, and surmounting investment in autonomous technology. 

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The company posted a quarterly loss of $202M, or $0.22 per share, with a revenue of $1.34B. To the relief of investors, numbers came in significantly higher than the Street consensus, who expected an average loss of $0.33 per share. Xpeng also impressed on deliveries throughout January and February, delivering over 19,000 vehicles despite factory closures over China’s Lunar New Year holiday. Finally, the company expects to deliver a total of 33,500 and 34,000 over the quarter.

Mr He Xiaopeng, Xpeng Chairman and CEO stated:

“2021 was marked by impressive growth with record-breaking fourth-quarter deliveries led by our blockbuster P7 model and our newly launched P5 family sedan. For both the full year and fourth quarter, our total deliveries more than tripled year-over-year, fueled by the fast-growing EV penetration in China and our competitive Smart EV products”

If Xpeng can stick to its 33,500-34,000 target, that will represent growth of over 150% year-over-year. The company is starting to plant firm roots within the Chinese EV ecosystem; investors should start to take notice.

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