Mixed Xpeng earnings report; Xpeng shares and electric vehicle rivals continue to decline

Chinese manufacturer of electric vehicles Xpeng (XPEV) reported mixed fourth-quarter estimates early Monday, a week after its rival Child (NIO) released a mixed report and warned of a global shortage of chips. Xpeng shares fell solidly early Monday, along with Nio, Li Auto (LI) and Tesla (TSLA).


Xpeng earnings report

DearWall Street expected a loss of 12 cents a share on revenue of $ 411.38 million, according to Yahoo Finance.

Results: Xpeng lost 15 cents a share as revenue increased 345.5% to $ 437 million.

Previously, Xpeng reported having sold 12,964 vehicles in the fourth quarter of 2020, 303% more than a year ago. It delivered a total of 27,041 vehicles in 2020, 112% more. Makes the P7 sedan, a rival to the Chinese-made Tesla Model 3, and the small G3 SUV.

By comparison, Nio sold 17,353 electric vehicles in the fourth quarter and 43,728 in the year. Li Auto sold 14,464 hybrid electric vehicles in the fourth quarter and 32,624 for the year.

But last week, Nio warned that chip and battery shortages will force a production slowdown to 7,500 a month in the second quarter from 10,000 vehicles as of February.

Xpeng, Li Auto and Nio reported February deliveries last week that were down significantly from January, amid the Lunar New Year holidays. Xpeng deliveries were 2,223 electric vehicles compared to 6,015 in January. The company expects first-quarter deliveries of 12,500 vehicles, 450% more than the previous year. That would also mean deliveries in March 4,262.

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Xpeng Stock

The shares fell nearly 4% in trading Monday. Xpeng shares remain well below their 50-day line, according to MarketSmith chart analysis. The relative force line for XPEV stocks has tumbled since January.

Among other EV stocks, Li Auto fell 5% early Monday, Nio 5% and Tesla (TSLA) 3%.

Chinese EV stocks soared in 2020 as sales surged, rebounding from an early pandemic. Xpeng and Li Auto also joined an explosion of new electric vehicle stocks last year and won US IPOs worth billions of dollars.

But shares of Xpeng and its peers are under pressure this year amid a slide for Tesla, the world leader in electric vehicles. In addition, China cut subsidies for electric vehicles, while Chinese auto and tech giants entered the electric car market.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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