XPeng stock slips after Q2 record loss, yet its Tesla Model Y rival EV is boosting sales

Published

2 years ago

August 18, 2023

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Chinese EV maker XPeng Motors (XPEV) released its second-quarter earnings Friday, showing a rebound in revenue but record losses. Meanwhile, the recently launched XPeng G6, viewed as a Tesla Model Y rival, is already “turbocharging” sales growth.

XPeng (XPEV) losses grow in Q2, despite higher revenue

XPeng delivered 23,205 vehicles in the second quarter, up 27.3% from the first three months of the year but still down 36% from last year.

After peaking in the fourth quarter of 2022, XPeng’s revenue has nearly consistently fallen quarter-over-quarter, yet the EV maker saw a rebound in Q2.

XPeng’s revenue climbed 25% QoQ to RMB 5.06 billion (roughly $700,000) in Q2, but that’s still down 31% from last year. Furthermore, the EV maker’s gross margins fell back into negative territory (-3.9%) compared to 10.9% last year and 1.7% from the first quarter. Vehicle margin also fell to (-8.6%).

As a result, XPeng posted its largest loss of RMB 2.80 billion ($385,000) since going public in August 2020.

The growing losses come as XPeng faces stiff competition with EV makers like BYD, Tesla, NIO, and others in its home market.

XPeng-Q2-Tesla-Model-Y-rival-1 — XPeng Q2 2023 financial highlights (Source: Business Wire)

XPeng slashed prices on its most popular EVs in January following drastic price cuts from Tesla that triggered an “EV price war,” which is a primary reason for the growing losses.

Tesla just cut prices again on its Model Y and Model 3 in China this week, putting further pressure on EV makers like XPeng with rival EVs.

Tesla Model Y rival XPeng G6 Coupe SUV to boost sales

Despite the record loss, XPeng remains hopeful that its G6 Coupe SUV will help boost sales and margins as a Tesla Model Y competitor. XPeng launched the G6 in late June, priced between RMB 200,000 ($28,500) and RMB 276,900 ($38,000) with up to 469 miles CLTC range.

Compared to the Model Y, priced between 263,900 yuan ($36,000) and 349,900 yuan ($48,000) with up to 338 miles (545 km) CLTC range, the XPeng G6 may have a market. He Xiaopeng, chair and CEO of XPENG, stated:

XPENG G6, our first strategic model built on SEPA 2.0, has quickly become one of the best-selling models following its official launch in June, turbocharging our sales growth momentum. I believe the success of the G6 is just the beginning and moving forward, a wider range of SEPA2.0-enabled models will be brought to our customers.

XPeng expects to deliver between 39,000 and 41,000 in the third quarter, representing an increase of nearly 40%. The company delivered 11,008 vehicles in July, meaning it sees deliveries reaching between 27,992 and 29,992 over the next two months.

Meanwhile, XPeng anticipates revenue to continue trending upward, projecting between RMB 8.5 billion ($1.17 billion) and RMB 9 billion ($1.2 billion) in Q3.

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IONNA and Casey’s to bring more fast charging to the US Midwest

Published

4 hours ago

October 23, 2025

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IONNA and Casey’s to bring more fast charging to the US Midwest

Charging network IONNA is partnering with Casey’s, one of the US’s largest convenience store and pizza chains, to bring DC fast charging to EV drivers across the Midwest.

Starting this year, Casey’s customers can plug into IONNA’s 400 kW charging stations while grabbing a slice or stocking up on road-trip essentials. Eight “Rechargeries” are already under construction in six states and are expected to open in 2025:

Little Rock, Arkansas
Vernon Hills, Illinois
McHenry, Illinois
Terre Haute, Indiana
Parkville, Missouri
Kearney, Missouri
Blackwell, Oklahoma
Waco, Texas

The Casey’s deal pushes IONNA past 900 charging bays in construction or operation — more than double what it had just three months ago. IONNA says the partnership will “expand,” but doesn’t provide specifics.

“This partnership with Casey’s is key to expanding our presence in America’s heartland,” said IONNA CEO Seth Cutler. “With a shared respect and commitment to delivering quality customer experience, we are pleased to add Casey’s to our growing network of partners.”

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IONNA is a joint venture backed by eight of the world’s biggest automakers – BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, Stellantis, and Toyota – working to rapidly scale a DC fast-charging network in the US.

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Google and Anthropic announce cloud deal worth tens of billions of dollars

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6 hours ago

October 23, 2025

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Google and Anthropic announce cloud deal worth tens of billions of dollars

Google, Anthropic agree to cloud deal worth tens of billions of dollars

Anthropic and Google officially announced their cloud partnership Thursday, a deal that gives the artificial intelligence company access to up to one million of Google’s custom-designed Tensor Processing Units, or TPUs.

The deal, which is worth tens of billions of dollars, is the company’s largest TPU commitment yet and is expected to bring well over a gigawatt of AI compute capacity online in 2026.

Industry estimates peg the cost of a 1-gigawatt data center at around $50 billion, with roughly $35 billion of that typically allocated to chips.

While competitors tout even loftier projections — OpenAI’s 33-gigawatt “Stargate” chief among them — Anthropic’s move is a quiet power play rooted in execution, not spectacle.

Founded by former OpenAI researchers, the company has deliberately adopted a slower, steadier ethos, one that is efficient, diversified, and laser-focused on the enterprise market.

Anthropic launches Claude Sonnet 4.5, its latest AI model

A key to Anthropic’s infrastructure strategy is its multi-cloud architecture.

The company’s Claude family of language models runs across Google’s TPUs, Amazon’s custom Trainium chips, and Nvidia’s GPUs, with each platform assigned to specialized workloads like training, inference, and research.

Google said the TPUs offer Anthropic “strong price-performance and efficiency.”

“Anthropic and Google have a longstanding partnership and this latest expansion will help us continue to grow the compute we need to define the frontier of AI,” said Anthropic CFO Krishna Rao in a release.

Anthropic’s ability to spread workloads across vendors lets it fine-tune for price, performance, and power constraints.

According to a person familiar with the company’s infrastructure strategy, every dollar of compute stretches further under this model than those locked into single-vendor architectures.

Google, for its part, is leaning into the partnership.

“Anthropic’s choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years,” said Google Cloud CEO Thomas Kurian in a release, touting the company’s seventh-generation “Ironwood” accelerator as part of a maturing portfolio.

Anthropic takes a page from Palantir as AI battle with OpenAI goes global

Claude’s breakneck revenue growth

Anthropic’s escalating compute demand reflects its explosive business growth.

The company’s annual revenue run rate is now approaching $7 billion, and Claude powers more than 300,000 businesses — a staggering 300× increase over the past two years. The number of large customers, each contributing more than $100,000 in run-rate revenue, has grown nearly sevenfold in the past year.

Claude Code, the company’s agentic coding assistant, generated $500 million in annualized revenue within just two months of launch, which Anthropic claims makes it the “fastest-growing product” in history.

While Google is powering Anthropic’s next phase of compute expansion, Amazon remains its most deeply embedded partner.

The retail and cloud giant has invested $8 billion in Anthropic to date, more than double Google’s confirmed $3 billion in equity.

Still, AWS is considered Anthropic’s chief cloud provider, making its influence structural and not just financial.

Its custom-built supercomputer for Claude, known as Project Rainier, runs on Amazon’s Trainium 2 chips. That shift matters not just for speed, but for cost: Trainium avoids the premium margins of other chips, enabling more compute per dollar spent.

AWS outage ripples across internet, puts pressure on Amazon ahead of earnings

Wall Street is already seeing results.

Rothschild & Co Redburn analyst Alex Haissl estimated that Anthropic added one to two percentage points to AWS’s growth in last year’s fourth quarter and this year’s first, with its contribution expected to exceed five points in the second half of 2025.

Wedbush’s Scott Devitt previously told CNBC that once Claude becomes a default tool for enterprise developers, that usage flows directly into AWS revenue — a dynamic he believes will drive AWS growth for “many, many years.”

Google, meanwhile, continues to play a pivotal role. In January, the company agreed to a new $1 billion investment in Anthropic, adding to its previous $2 billion and 10% equity stake.

Critically, Anthropic’s multicloud approach proved resilient during Monday’s AWS outage, which did not impact Claude thanks to its diversified architecture.

Still, Anthropic isn’t playing favorites. The company maintains control over model weights, pricing, and customer data — and has no exclusivity with any cloud provider. That neutral stance could prove key as competition among hyperscalers intensifies.

WATCH: Anthropic’s Mike Krieger on new model release and the race to build real-world AI agents

Environment

JB Straubel’s Redwood snags $350M to deploy more US-made battery storage

Published

6 hours ago

October 23, 2025

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JB Straubel’s Redwood snags 0M to deploy more US-made battery storage

Redwood battery storage — Photo: Redwood Materials

Redwood Materials, founded by former Tesla CTO and cofounder JB Straubel, has raised $350 million in new funding to scale its US-made battery storage systems and critical materials operations. The company is ramping up to meet surging demand from AI data centers and the clean energy sector.

The oversubscribed Series E round was led by Eclipse, with participation from NVentures, NVIDIA’s venture capital arm, and other new strategic investors.

As global supplies tighten, the US is racing to secure domestic production of critical materials like lithium, nickel, cobalt, and copper. In July, Redwood and GM signed a non-binding memorandum of understanding to turn new and second-life GM batteries into energy storage systems. Redwood launched a new venture in June called Redwood Energy that repurposes both new and used EV battery packs into fast and cost-effective energy storage systems.

Redwood says large-scale battery storage is the fastest and most scalable way to enable new AI data center rollout while unlocking stranded generation capacity and stabilizing the grid. Battery storage also helps industrial facilities electrify and balance renewable energy output. The company aims to deliver a new generation of affordable, US-built energy storage systems designed to serve the grid, heavy industry, and AI data centers, reducing dependence on imported Lithium Iron Phosphate batteries.

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Redwood will use the new capital to expand energy storage deployments, refining and materials production capacity, and its engineering and operations teams.

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