EV Maker XPeng Earnings Preview

XPeng Inc

XPeng is a leading Chinese smart electric vehicle ("Smart EV") company that designs, develops, manufactures and markets Smart EVs. It was founded in 2015 and primarily target the mid- to high-end segment in China's passenger vehicle market. [1]

Back in August, it had made its entry into the European market, with the first shipment off to Norway [2], following similar move by competitor Nio [3].

It currently has three models in its line-up, the G3 Smart SUV, the P7 smart sports sedan and the P5 family sedan, which only launched in September.

Today, Friday November 19, the company debuted a fourth model at the Auto Guangzhou 2021 show - the flagship smart SUV, called G9. [4]

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The firm also has a supercharging network of 439 branded stations across 121 Chinese cities, as of September 30, 2021. [5]

Deliveries & Production

The company has already announced record 25,666 vehicles delivered in the third quarter of the year, representing a staggering 199% y/y increase [5].

In the most recent report, Xpeng said that deliveries dropped to 10,138 cars in October [6], following September's record of 10,412. October's figures though, still marked a 233% year-over-year rise.

Those deliveries consisted of 6,044 P7 smart sports sedans, 3,657 G3 and G3i smart SUVs and 437 units of the newest P5 smart family sedan.

During the previous month, XPeng reached an important production milestone, as the 100,000th vehicle rolled off the production line [7].

2021 TECH DAY

Xpeng hosted its TECH DAY on Sunday October 25 [8], where it unveiled latest version of semi-autonomous driving, supercharging technology breakthroughs and a flying car.

More specifically, XPILOT 3.5 will roll out in the first half of 2022 and XPILOT 4.0 is slated for release one year later. It also said that it will introduce China's first 800V high-voltage mass-production SiC platform, able to charge for a range of up to 200 km in just 5 minutes.

Most notably, the firm unveiled the new generation flying car design, developed by its affiliate Urban Air Mobility (UAM) company, the HT Aero. The HT Aero is planed for roll-out in 2024.

Q3 2021 Earnings

XPeng is scheduled to release its financial results for the third quarter of the year, on Tuesday November 23, before the US markets open.

In the previous quarterly report [9], it had projected Total Revenues to be between RMB 4.8 billion and RMB 5.0 billion for Q3, which would constitute a year-over- year increase of approximately 141.2% to 151.3%.

We will also be looking forward to see how the Gross margins will progress and for any commentary around potential chip-shortages and supply chain disruptions, that have been a key area of concern for most manufacturers around the world.

Stock Movement

XPEV.us declined around 20% in the third quarter, but the current one started on the front foot, as October was profitable.

Last week it managed to rise to the highest level since February, but has been having a mixed month so far, struggling to stay above its Hourly EMA (black line).


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 19 Nov 2021 https://ir.xiaopeng.com/overview/default.aspx

2

Retrieved 19 Nov 2021 https://twitter.com/XPengMotors/status/1430462329347477505

3

Retrieved 19 Nov 2021 https://www.nio.com/news/nio-es8-shipped-norway

4

Retrieved 19 Nov 2021 https://twitter.com/XPengMotors/status/1461622075873894403

5

Retrieved 19 Nov 2021 https://ir.xiaopeng.com/news/news-details/2021/XPeng-Announces-Vehicle-Delivery-Results-for-September-and-Third-Quarter-2021/default.aspx

6

Retrieved 19 Nov 2021 https://ir.xiaopeng.com/news/news-details/2021/XPeng-Announces-Vehicle-Delivery-Results-for-October-2021/default.aspx

7

Retrieved 19 Nov 2021 https://twitter.com/XPengMotors/status/1447406959057989640

8

Retrieved 19 Nov 2021 https://www.businesswire.com/news/home/20211024005023/en/XPeng-1024-Tech-Day-Unveils-Smart-EV-Technologies-and-Mobility-Ecosystem

9

Retrieved 06 Dec 2021 https://ir.xiaopeng.com/news/news-details/2021/XPeng-Reports-Second-Quarter-2021-Unaudited-Financial-Results/default.aspx

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