XPeng Stock Soars As EV Deliveries Take Off

Core Insights - XPeng reported better-than-expected results with a significant increase in electric vehicle deliveries and a substantial reduction in losses [1][2] - The company's revenue surged by 62.3% year-over-year, reaching CNY6.55 billion, while the gross margin improved dramatically to 12.9% from 1.7% a year ago [1][2] Financial Performance - XPeng's first-quarter loss was CNY1.37 billion ($190 million), which is approximately CNY1 billion less than the previous year [1] - The adjusted loss per American depositary share (ADS) was CNY1.49, narrower than market estimates [1] Delivery and Sales Growth - Vehicle deliveries increased by 19.7% year-over-year to 21,821 units, aided by a price cut in March and the launch of the new X9 model [2] - The company anticipates current-quarter deliveries to be between 29,000 and 32,000, representing a year-over-year increase of 25.0% to 37.9% [3] Revenue Projections - XPeng expects revenue for the current quarter to be in the range of CNY7.5 billion to CNY8.3 billion, indicating a year-over-year increase of 48.1% to 63.9% from Q2 2023 [3] Market Position and Strategy - The company claims to have taken the lead in the mass production and application of AI-based large models in the Chinese automobile industry, aiming to promote the adoption of AI-powered smart cars globally [3]