XPeng falls 6% after posting its largest loss [~$370M] since going public

[Hamartia Antidote]

XPeng falls 6% after posting its largest loss since going public (NYSE:XPEV)

XPeng (XPEV) fell in early trading on Friday after the Chinese electric vehicle maker reported a larger Q2 loss than anticipated

seekingalpha.com

XPeng (NYSE:XPEV) fell in early trading on Friday after the Chinese electric vehicle maker reported a larger Q2 loss than anticipated.

XPeng's net loss of 2.7B yuan was worse than the 2.1B yuan consensus estimate and the highest loss since the company went public in 2020. Gross margin was negative 3.9% of sales for the quarter vs. 10.9% a year ago and 1.7% in Q1. Vehicle margin was negative 8.6% for the quarter, compared with 9.1% a year ago and negative 2.5% for Q1. XPeng's non-GAAP loss rose to $2.67 per share from $2.21 a year ago. The pressure on the profit line was due in part to price drops that were enacted before and during the quarter.

The company said it is benefiting from new products and more efficient sales channels. XPEV also noted that vehicle deliveries have posted sequential growth for six consecutive months. "With the G6 and other new products accelerating sales growth, we expect gross margin to gradually recover while operating efficiency continues to improve and free cash flow to substantially improve," stated Honorary Vice Chairman Dr. Hongdi Brian Gu.

Shares of XPeng (XPEV) swung 6.39% lower in premarket action on Friday. The XPeng loss also created some trading jitters, with Chinese EV peers. Li Auto (LI) fell 4.56% during the early session, and NIO (NIO) was down 4.87%.

 

[Skull and Bones]

Most EV makers will have very thin profit like these chinese phone makers, We just have to see who is the Samsung of EVs. Tesla has clearly positioned itself as the Apple of EVs.