XPeng’s stock soars, as China-based EV maker reports more than fourfold jump in revenue

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Shares of XPeng Inc. shot up 11% in premarket trading Thursday, after the China-based electric vehicle maker reported a third-quarter loss that widened from a year ago but revenue that jumped more than fourfold as deliveries soared 266%. XPeng, which went public in late August, recorded a net loss of RMB1.15 bln ($169.2 million), or RMB5.07 per American depositary share, after a loss of RMB776.3 million, or RMB5.62 per ADS, in the year-ago period, as the ADS outstanding more than doubled to 399.7 million from 174.7 million. Excluding non-recurring items, the adjusted per-ADS loss was RMB2.16 Revenue grew 342.5% to RMB1.99 billion ($293.1 million). The loss per ADS missed expectations while revenue beat, according to FactSet, which had just two analyst estimates. Deliveries climbed 265.8% from last year to 8,578 vehicles, while deliveries of the P7 vehicle were 6,210, up from 325 in the sequential second quarter. October deliveries totaled 3,040 vehicles, up 229.0% from last year. Gross margin was 4.6%, compared with negative 10.1% a year ago. For the fourth quarter, XPeng expects to deliver about 10,000 vehicles, up 210.8% from last year, and revenue is expected to increase 243.7% to RMB2.20 billion ($332.4 million). XPeng’s stock has rallied 67.1% since the end of September through Wednesday, while shares of China-based rivals Nio Inc. have run up 103.0% and Li Auto Inc. have advanced 43.6%. In comparison, iShares MSCI China ETF has gained 7.4% quarter to date and the S&P 500 has tacked on 6.2%.
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