XPeng Inc (NYSE: XPEV) is screaming for the top in the market this morning, yet another exciting run in the electric vehicle space. The gains come after the company reported its financial results for the third quarter, beating expectations and setting the stage for a strong future with compelling guidance. Here’s what’s going on:
XPEV Stock Is Up Big On Financial Results
In the press release, XPeng said that it had an incredible quarter, with revenue climbing dramatically, following a 266% year over year run in vehicle deliveries. Once non-recurring items were excluded, the adjusted revenue growth was 342.5, coming in at $293.1 million.
The revenue beat offset an upset with regard to losses. In the quarter, XPEV genreated an adjusted loss of RMB1.99 billion ($293.1 million). Nonetheless, more positive news was provided.
The company said that deliveries were up dramatically, with 8,578 vehicles delivered in the quarter. P7 vehicle deliveries came in at 6,210, up from just 325 deliveries on a sequential basis. Moreover, October deliveries came in at 3,040, a 229% increase year over year.
Guidance was also impressive. The company said that it expects to deliver 10,000 vehicles in the fourth quarter. If that figure is hit, it will represent 210.8% year over year growth. Revenue is expected to come in at $332.4 million, up 243.7% on a year over year basis.
In a statement, Mr. He Xiaopeng, Chairman and CEO at XPEV, had the following to offer:
In our first quarter as a public company we achieved strong operating and financial results, highlighted by the rapid growth in deliveries of our P7 Smart EV.
Our commitment to innovation through end-to-end in-house R&D and data-driven capabilities is the cornerstone of our business. This will not only keep XPeng at the forefront of the technologies of Smart EV but also position us well in capturing the significant growth potential in the Smart EV industry. Looking ahead, XPeng will continue to capitalize on its core strengths in technology, while heightening sales and marketing efforts, further enhancing manufacturing capability, and developing our global strategy.
This Is Big News
Electric vehicles are the wave of the future as the world looks for cleaner alternatives to widely accepted modes of transportation and sources of energy. As a result, demand for quality electric vehicles will likely continue to climb. With such a strong performance in the quarter, XPeng is proving that it has the ability to take the market head on and take advantage of the compelling growth in the space.
Furthermore, this is the company’s first quarterly earnings report as a publicly traded entity. The fact that the report was positive is overwhelmingly positive news.
Beyond that there’s likely a climate change coming in terms of how we see energy and transportation. With Biden taking the win in the United States Presidential Election, the United States is likely to be far more involved in efforts to reverse the human carbon footprint on our planet. Moreover, Biden may bring peace in trade between the United States and China, further offering support for growth in the value of the stock.
All in all, the company is performing well in a market with incredible opportunity. This combined with the change of climate in the transportation and energy sectors will likely bode well for XPEV stock and all involved.
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