Xpeng’s Loss Grows as Supply Chain Problems Reach It!
Xpeng Inc., a Chinese electric car manufacturer, announced a larger-than-expected quarterly loss as supply-chain bottlenecks and rising material costs pressured profits.
In the three months through March, the company’s net loss more than doubled to 1.7 billion yuan ($260 million), according to the Guangzhou-based manufacturer. Analysts’ expectations of a 1.52 billion yuan shortfall were lower. The company’s revenue prediction for the current quarter was lower than analysts’ expectations as well.
Xpeng stock fell as much as 4.7 percent in pre-market trading in New York.
Since Xpeng’s vehicle deliveries and revenue more than doubled in the previous quarter, the business and its counterparts have been heavily hurt by Shanghai’s COVID lockout and supply chain snarls in China. In April, shipments fell 42% from March to only 9,002 automobiles. Surging costs for raw materials and batteries have also impacted the firm, pushing it to join other EV manufacturers in hiking prices.
The automaker expects deliveries of 31,000 to 34,000 units and sales of up to 7.5 billion yuan in the second quarter, falling short of analysts’ projections of 8.3 billion yuan.
Xpeng’s New York-listed shares have dropped 54% this year, making it the worst-performing of the three Chinese electric vehicle manufacturers listed in the United States. As part of a larger sell-off of electric vehicle startups and fears that Chinese companies could be delisted from US markets, Nio Inc. is down 48% and Li Auto Inc. is down 25%.
