XPeng (XPEV), a leading Chinese smart EV manufacturer, released its Q3 2022 earnings Wednesday, missing top and bottom line estimates while offering a less-than-ideal delivery outlook for the rest of the year. Despite this, XPeng stock is racing higher. Let’s see why investors are jumping back in.
Since its foundation in 2015, XPeng has trailblazed its way to becoming a leading electric vehicle maker in the largest EV market globally.
XPeng focuses on delivering “smart EVs,” loaded with leading software and hardware, connectivity features, advanced driver assistance systems, and core vehicle systems. In September 2021, the company began deliveries of its XPeng P5, one of the first mass-produced smart EVS equipped with LIDAR.
The EV maker is building a diverse portfolio of vehicles to fit a wide range of consumer needs, including the following:
G3i – Compact SUV
P7 – Sports sedan
P5 – Family sedan
In addition, XPeng launched its flagship G9 SUV, which began mass deliveries at the end of October. The company believes the G9 will help drive future sales volume with an 800V platform and charging speeds that will “outperform any of its competitors in the market.”
Meanwhile, like many young EV makers, XPeng is absorbing higher costs while trying to manage widening losses. To make matters worse, increasing competition and renewed COVID-19 lockdowns in China are presenting an extra challenge.
In the second quarter, XPeng’s loss widened to $403 million as EV deliveries fell and higher material costs caused gross margins to slip to 10.9%.
XPeng warned EV deliveries would fall further in Q3, indicating between 29,000 and 30,000. With 29,570 total deliveries, the EV maker hit its mark, but not by much. Either way, XPeng stock is soaring today.
XPeng G9 (Source: XPeng)
XPeng Q3 financial and delivery results
Total deliveries in the third quarter hit 29,570, up 15% from Q3 2021, yet Xpeng’s EV sales have continued trending lower since hitting a peak of 41,751 in the fourth quarter of 2021. The deliveries included:
P7 – 16,776
P5 – 8,703
Revenue from vehicle sales reached $880 million, up 14% from Q3 2021 but decreasing 10% from the second quarter. Despite this, the cost of sales increased 20.4% from last year as material prices continue cutting into margins.
XPeng’s gross margins bounced back from 10.9% last quarter to 13.5% in Q3 as the automaker has implemented several measures to boost efficiency. During the company’s third-quarter earnings call, the president of XPeng, Dr. Hongdi Brian Gu, spoke about an internal organization restructuring to cut costs and drive long-term results.
We will implement prudent cost control initiatives and improve operational efficiency. As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price.
XPeng compared the current EV race in China to a marathon competition, claiming only the strongest players with “well-rounded capabilities, core technology,” and perhaps most importantly, the ability to “monetize from both hardware and software” will win in the long run.
The aim is to be “more concentrated and efficient” to drive future profitability and competitiveness. (Rivian’s CEO also spoke on this.)
Despite the company’s best efforts, XPeng’s loss widened to $330 million (RMB2.38 billion) from around $224 million (RMB1.59 billion) last year as the company scales production. Xpeng issued the following guidance for Q4:
EV deliveries: Between 20,000 and 21,000
Revenue: Between RMB4.8 and RMB5.1 billion
The downbeat outlook is due to renewed lockdowns in China causing ongoing supply chain disruptions while ramping production of its flagship G9 SUV.
Why is XPeng stock trending
Even with the cautious guidance, XPeng stock is up over 40% today. For one thing, XPeng’s cost-cutting measures are good news. Maintaining efficiency through the production ramp will be critical to the company’s success.
Gu says the effects of XPeng’s internal restructuring will likely become visible in the second half of 2023 when he also expects the EV market to accelerate further. The stock market is forward-looking and could be looking past short-term hurdles.
Management also noted that, although a slowdown is expected this month, December should see sales rebound “sharply” as we roll into the new year.
Lastly, protests have erupted in China over the fresh “zero-Covid” mandates that may be sparking hope for an eased policy, with several Chinese EV stocks trending higher today.
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Fleet electrification expert Tony Nisam took to LinkedIn yesterday to post a deal that he ran across at a Washington State Costco that stacks a $25,500 manufacturer rebate with $3,000 in “regular” Costco Member Savings, $2,750 in “LIMITED-TIME” Manufacturer to Member Incentives, plus an additional $250 for Costco Executive members.
Do a bit of math (add up 25,500 + 3,000 + $2,750 + 250), and you’ll calculate an almost unheard of $31,500 discount on one of the best, most capable commercial vans on the market – ICE or electric. And that’s before you factor in the 0% interest financing (72 mo.) being advertised at Blade Chevrolet, the Mount Vernon, Washington, where VIN 2G58J2TY6S9104313 (the exact van shown, below) is shown as stock number 16757.
If you’re not a Costco member yet and you’re looking for a new truck for your business or even a unique #vanlife ride with zero emissions, modern tech, and a nationwide dealer network, GM makes that $130 Executive membership seem like a no-brainer.
Is a $39,000 price cut enough to get you to take a look at a new Brightdrop? At $45,235 (from a starting price of $84,235), can you afford not to? Head down to the comments and let us know.
Tesla has quietly removed the Cybertruck’s range extender from the options in its online configurator.
Does Tesla still plan to bring the product to market?
When Tesla unveiled the production version of the Cybertruck in late 2023, there were two main disappointments: the price and the range.
The tri-motor version, which was the most popular in reservation tallies, was supposed to have over 500 miles of range and start at $70,000.
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Tesla now sells the tri-motor Cybertruck for $100,000 and only has a range of 320 miles.
As for the dual-motor Cybertruck, it was supposed to cost $50,000 and have over 300 miles of range. The reality is that it starts at $80,000, and it has 325 miles of range.
However, Tesla had devised a solution to bring the range closer to what it originally announced: a separate battery pack that sits in the truck’s bed. Tesla called it a “range extender.” It costs $16,000 and takes up a third of the Cybertruck’s bed.
Even though the Cybertruck has been in production for a year and a half at this point, the range extender has yet to launch.
At the time, Tesla also reduced the range that the removable battery pack adds to the Cybertruck to “445+ miles” rather than “470+ miles” for the dual motor – a ~25-mile reduction in range.
Now, Tesla has removed the option from its online Cybertruck configurator. It used to take reservations for the range extender with a “$2,000 non-refundable deposit”, as seen on the image above, but now it’s not in the configurator at all at the time of writing.
It’s unclear if Tesla is not planning to launch the product anymore or if it is just pausing reservations.
In its specs page, Tesla still lists the achievable range of both versions of the Cybertruck with and without the range extender battery:
Electrek’s Take
I’m curious. Is it dead, or does Tesla just want to stop taking reservations for it?
At first, I was curious about the product even though I didn’t think it would make up for Tesla’s significant miss on Cybertruck specs.
However, after it was confirmed that it takes up 30% of your bed and that it needs to be installed and removed by Tesla at a service center, I think it’s pretty much dead on arrival at $16,000.
It’s going to be a product limited to only a few people at best. And now that’s if it makes it to market.
With the option being removed from the configurator, there’s no production timeline available. Again, the last one was “mid-2025”, which is soon.
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Portable power station specialist EcoFlow is kicking off its third annual Member’s Festival this month and is offering a unique new rewards program to those who become EcoFlow members. The 2025 EcoFlow Member’s Festival will offer savings of up to 65% for its participating customers, and a portion of those funds will be allocated toward rescue power solutions for communities around the globe through the company’s “Power for All” fund.
EcoFlow remains one of the industry leaders in portable power solutions and continues to trek forward in its vision to power a new tech-driven, eco-conscious future. Per its website:
Our mission from day one is to provide smart and eco-friendly energy solutions for individuals, families, and society at large. We are, were, and will continue to be a reliable and trusted energy companion for users around the world.
To achieve such goals, EcoFlow has continued to expand its portfolio of sustainable energy solutions to its community members, including portable power stations, solar generators, and mountable solar panels. While EcoFlow is doing plenty to support its growing customer base, it has expanded its reach by giving back to disaster-affected communities by helping bolster global disaster response efforts the best way it knows how– with portable power solutions.
Source: EcoFlow
EcoFlow and its members look to provide “Power for All”
Since 2023, EcoFlow has collaborated with organizations worldwide as part of its “Power for All” mission. This initiative aims to ensure access to reliable and timely power to disaster-affected communities across the globe, including rescue agencies, affected hospitals, and shelters, to support rescue and recovery efforts.
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This fund most recently provided aid for communities affected by the recent Los Angeles wildfires, assistance to the Special Forces Charitable Trust (SFCT) in North Carolina following severe hurricanes, and support for non-profits engaged in hurricane preparedness in Florida and the Gulf Coast. Per Jodi Burns, CEO of the Special Forces Charitable Trust:
In the wake of devastating storms in Western North Carolina, reliable power was a critical need for the families we serve. Thanks to EcoFlow’s generous donation of generators, we were able to provide immediate relief, ensuring these families and their communities had access to power when they needed it most. We are so impressed with EcoFlow’s commitment to disaster response through their ‘Power for All’ program. It has made a tangible impact, and we are deeply grateful for their support and partnership in helping these families recover and rebuild.
In 2024, the US experienced 27 weather and climate events, each causing losses exceeding $1 billion, marking the second-highest annual total on record, according to National Centers for Environmental Information. The increasing frequency and severity of natural disasters underscore the critical need for reliable and timely power solutions during emergencies, much like EcoFlow and its members are helping provide through the “Power For All” initiative.
To support new and existing EcoFlow members, the company is celebrating its third annual Member’s Festival throughout April to offer a do-not-miss discount on its products and donate a portion of all sales to the “Power for All” fund to provide rescue power to those in need in the future. Learn how it all works below.
Source: EcoFlow
Save big and give back during the 2025 Member’s Festival
As of April 1st, you can now sign up to become an EcoFlow member to participate in the company’s exclusive 2025 Member Festival.
As a member, you can earn “EcoFlow Power Points” by completing tasks like registration, referrals, and product purchases and tracking your individual efforts toward disaster preparedness and recovery.
Beginning April 4, EcoFlow members will also be able to take advantage of exclusive discounts of up to 65% off select portable power stations, including the DELTA Pro Ultra, DELTA Pro 3, DELTA 2 Max, DELTA 3 Plus, RIVER 3 Plus, and more. However, these sale prices only last through April 25, so you’ll want to move quickly!
Click here to learn more about EcoFlow’s “Power for All” campaign. To register for EcoFlow’s 2025 Member Festival in the US, visit the EcoFlow website. To register as a member in Canada, visit here.
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