The shares of Xpeng Motors in China experienced a downturn on Tuesday following the electric vehicle (EV) manufacturer’s announcement of a less substantial decrease in losses than anticipated for the fourth quarter. Although income rose in comparison to the corresponding timeframe of the prior year, it was evident that investors were anticipating greater advancement concerning profitability.
Specifically, Xpeng’s Q4 income was approximately RMB 16.11 billion ($2.23 billion USD), signifying a 23% surge annually. Nevertheless, the adjusted loss per American depositary share (ADS) amounted to RMB 1.47, which, despite being an improvement over the preceding year’s RMB 1.98 loss, still failed to meet the expectations of analysts.
Looking forward, Xpeng is predicting a robust initial quarter in 2025, projecting that deliveries will climb to between 91,000 and 93,000 automobiles – a fourfold rise from the previous year. They are also forecasting that income will more than double, settling between RMB 15 billion and RMB 15.7 billion. How Observers are Assessing Semiconductor Stock Before Profits
The wider EV marketplace is likewise witnessing heightened rivalry. The Chinese EV behemoth BYD recently presented a novel charger that pledges to deliver 250 miles of range in approximately the same duration it takes to refuel a gasoline-powered vehicle. This announcement, in conjunction with Xpeng’s outcomes, exerted strain on other EV stocks such as Tesla (TSLA) as well.
Consequently, Xpeng’s U.S.-listed shares concluded the day down almost 8% on Tuesday, at a price of $22.61.
