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.
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.