Xpeng Opens Higher After Q3 Results

The Chinese electric vehicle maker released solid financial results for the third quarter, earlier today [1], with the stock rallying at the beginning of trading in the US.

Financials

The company reported Total Revenue of RMB 5.719,9 billion, which marked an increase of 187.4% year-over-year (y/y) and 52.1% on a quarterly basis (q/q), while beating its own forecast of RMB 4.8 billion to RMB 5.0 billion.

Losses per American depositary share (ADS) narrowed to RMB 1.89, compared with RMB 5.07 for the third quarter of 2020 and RMB 1.50 for the second quarter of 2021.

Xpeng's Gross Margins also strengthened to 14.4% for the third quarter of 2021, compared with 4.6% for the same period of 2020 and 11.9% for the second quarter of 2021.

Vehicle Data

During the reported period, the EV maker had sold RMB 5,460 billion worth of vehicles, up 187.7% y/y and 52.3% q/q. Deliveries for the reported period had already been announced at 25,666 cars.

The firm's Chairman and CEO Mr. He Xiaopeng took note of "the record-setting growth with the highest vehicle deliveries among China's startup new energy vehicle automakers" while also commenting that the results came "despite the challenges of semiconductor shortage".

Xpeng comes a series of good news, such the unveiling of new models and the ones that came out of its 2021 TECH DAY, whereas October's delivery figures had disappointed.

Stock Movement

XPEV.us opens higher after the strong results and breaks above 50.00, which had limited the upside since late October. Today's rise brings the stock ot levels not seen since January and now has the ability to take 54.77 out and look towards 60.00.

Broader market sentiment was on the defensive however and the technology sector reacted negatively to Mr Powell's re-nomination. These factors can contain the push higher and pressure towards the EMA100 (at around 47.00) is not ruled out, but a catalyst would be required for such moves.


Past Performance: Past Performance is not an indicator of future results.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 08 Dec 2021 https://ir.xiaopeng.com/news/news-details/2021/XPeng-Reports-Third-Quarter-2021-Unaudited-Financial-Results/default.aspx

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