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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.

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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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The Tesla Autopilot lawsuit floodgates are open, lawyer who beat Tesla is going for round 2

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The Tesla Autopilot lawsuit floodgates are open, lawyer who beat Tesla is going for round 2

The Tesla Autopilot and Full Self-Driving (FSD) lawsuit floodgates are open. We are now starting to see trials and settlements arising from crashes that occurred in 2018-2019 as they work through the legal process.

Crashes involving Tesla’s ADAS systems have increased significantly since then, and we expect legal actions to escalate following the groundbreaking defeat of Tesla’s primary defense in a trial in Florida.

The lawyer who beat Tesla in this case is already going for a Round 2.

As we previously reported, a jury in Florida has assigned 33% of the responsibility for a fatal crash involving Autopilot, Tesla’s level 2 advanced driver assistance system (ADAS), to Tesla and awarded the plaintiffs, the family of the victim and the survivor of the crash, $243 million.

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Tesla is expected to appeal the verdict, but it is still a groundbreaking case that highlights a trend in the legal actions against Tesla over crashes involving its ADAS systems (Autopilot and Full Self-Driving/FSD).

Over the last few years, Tesla has been able to dismiss those concerns as it hides behind warnings to pay attention and disclosures stating that the drivers are always the ones responsible in the event of an accident.

In short, Tesla has always claimed that it bears no responsibility if drivers abuse its ADAS systems.

However, things have been changing over the last year.

Tesla recently settled a wrongful death lawsuit involving a crash on Autopilot that happened in 2018, and now, it has lost a trial over a crash that happened in 2019.

In the trial, the plaintiffs managed to get around Tesla putting all the blame on the driver and show the jury that its marketing and deployment of Autopilot contributed to drivers misusing a system that fails to perform as advertised.

We already reported, based on the transcripts of the trial, that Tesla misled the police and the plaintiffs, a family trying to understand all the factors that led to their daughter’s death, in trying to retrieve critical Autopilot data that helped better understand the crash.

Next, the evidence in the case is going to be made public, except for some redactions from Tesla, which is likely going to be of interest in dozens of other legal cases involving Tesla’s ADAS systems.

In an interview with The Verge, Brett Schreiber, the lead attorney in the Florida case, revealed that he is also leading another wrongful death case against Tesla, Maldonado v. Tesla, currently pending in the Alameda State Superior Court, which is expected to commence by the end of the year.

In this case, a Tesla vehicle on Autopilot hit a pickup truck on the highway, killing fifteen-year-old Jovani Maldonado, who was a passenger in the pickup truck. His father was driving him back home from a soccer game.

This crash also occurred in 2019, but it is only now being brought to trial. The legal process takes time, and we are only now beginning to see the legal repercussions of crashes involving Tesla Autopilot, as well as Tesla’s Full Self-Driving system.

With more vehicles in the Tesla fleet and more mileage using ADAS features, crashes involving those features increased significantly between 2020-2025. This means more legal trouble for Tesla.

Schreiber claims to have an even stronger case with Maldonado v. Tesla. In the Benavides case in Florida, the “Autopilot defect” part of the case was more about the fact that the driver shouldn’t have been able to use the system on non-highway roads.

In the Maldonado case, the crash occurred on the highway, where Autopilot is intended to be used, but it didn’t stop for the pickup truck in front of it.

The facts are a stubborn thing. And we get to tell those same facts with a better Autopilot defect theory. And I get to not only juxtapose Musk’s lies in that case, but I juxtapose them with the testimony that I didn’t have in Miami. I’ve only had this case for a year. I worked the Maldonado case from the beginning. And in that case, I have testimony from all of the senior Autopilot leadership: Sterling Anderson, CJ Moore, Andrej Karpathy. And I show them those same quotes that were played to that jury in Miami. I said, “When Mr. Musk said those things, was that a true statement about production vehicles at Tesla?” To a person, they answer: Absolutely not.

Schreiber claims to have testimonies from Tesla Autopilot executives and engineers around the time of the crash that contradict what CEO Elon Musk was saying to the public about Autopilot.

Once these testimonies are entered as evidence, they could have important implications for dozens of other cases involving Autopilot.

Electrek’s Take

Obviously, avoiding loss of lives should be a priority, but I think it’s clear that Tesla doesn’t care at this point. But even from a business standpoint, it doesn’t make sense.

One of my foremost criticisms of Tesla’s self-driving efforts from a business standpoint is that they are a bigger liability than a value creator.

Tesla has clearly misled the public for years, leading them to believe that Autopilot and FSD are more than they are: level 2 driver assistance systems.

Schreiber explained it well here:

[…] there are two Teslas. There’s Tesla in the showroom and then there’s Tesla in the courtroom. And Tesla in the showroom tells you that they’ve invented the greatest full self-driving car the world has ever seen. Mr. Musk has been peddling to consumers and investors for more than a decade that the cars are fully self-driving, that the hardware is capable of full autonomy. And those statements were as untrue the day he said them as they remain untrue today. But then they showed up in a courtroom and they say, No, no, no, this is nothing but a driver assistance feature.

This creates a significant liability in accidents involving people who believed Tesla’s misrepresentation. However, it also poses a substantial liability to claim that their cars have “all the hardware necessary for unsupervised self-driving” when that is not true.

We are likely talking about tens of billions of dollars worth of liability.

From a purely business standpoint, it might have made sense if Tesla had been first in autonomy and taken a large part of the market, but it’s not what’s happening.

Tesla is still far from achieving unsupervised self-driving at scale, while this liability is still building up.

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Toyota’s new EV strategy? If it can’t beat China, it’s teaming up instead

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Toyota's new EV strategy? If it can't beat China, it's teaming up instead

You know how the old saying goes: “If you can’t beat them, join them.” Well, Toyota’s new strategy is just that — it’s teaming up with China to lower costs for its upcoming EV models.

Toyota’s new EV strategy will use China to cut costs

The world’s largest automaker will tap into China to gain an edge in the global market. Toyota is already sourcing parts from Chinese suppliers to build EVs overseas.

According to Nikkei, Toyota is expanding the use of parts and other EV components from Chinese suppliers for its production base in Thailand.

The facility is Toyota’s largest production hub in Southeast Asia. Japanese brands have historically dominated vehicle sales in the region. However, low-priced EVs from Chinese brands, such as BYD, are quickly winning over buyers with more advanced tech and features.

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In Thailand, Japanese brands have accounted for roughly 90% of new vehicle sales. In the first five months of 2025, Japan’s market share dropped to just 71%. Meanwhile, Chinese brands saw their share rise to 16%.

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Toyota bZ electric vehicles in China (Source: Toyota)

Several sources note that Toyota has already begun sourcing EV components from China to use at its Thailand facility.

Toyota plans to launch more affordable electric vehicles at the hub as early as 2028. According to the company, it plans to reduce costs by about 30% by sourcing parts from China.

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Toyota bZ3X electric SUV (Source: Toyota)

By using local suppliers, Toyota has already sparked hope in China with new EVs, like the bZ3X, seeing strong initial demand. Starting at just 109,800 yuan ($15,000), Toyota’s electric SUV was the best-selling foreign brand EV in China in May, its second month on the market.

A Toyota executive confirmed (via 36kr) that “we also plan to develop electric vehicles with lower costs by making the most of parts from Chinese manufacturers, just like the bZ3X” in Southeast Asia.

Toyota-bZ3X-EV-interior
Toyota bZ3X interior (Source: Toyota)

The bZ3X is produced by Toyota’s joint venture, GAC-Toyota. It’s about the size of a Tesla Model Y, but half the cost in China.

During its EV Tech Day event in June, the company announced new partnerships with “car industry bigwigs,” like Xiaomi, Momenta, and Huawei.

Toyota also broke ground on a new EV plant in China for its luxury Lexus brand last month. It’s the second wholly owned auto plant in China from a foreign automaker, following Tesla.

Electrek’s Take

Can Toyota compete with China using parts sourced from the country? It will help, as shown with the bZ3X. However, with Chinese brands like BYD producing everything in-house, including the batteries, it will still likely have the advantage.

Toyota is promising to launch a series of lower-cost, more efficient EV batteries, but that could still be a few years out.

With the new US tariffs on imports from Japan, Toyota is doubling down on local production to minimize costs. It also opened its first overseas battery plant in North Carolina earlier this year, which will power Toyota’s EVs, HEVs, and PHEVs in North America.

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Did Ford just reveal the name of its ‘breakthrough’ midsize EV pickup?

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Did Ford just reveal the name of its 'breakthrough' midsize EV pickup?

A new patent hints at the name of Ford’s upcoming midsize EV pickup. Ford could be reviving an old nameplate for what it’s promising to be a “breakthrough” electric vehicle.

Ford’s next EV pickup could take the Ranchero name

After the F-150 Lightning, Ford’s next electric pickup could arrive as the Ranchero EV. Ford filed a trademark with the US Patent and Trademark Office (USPTO) under the name Ranchero on August 5, 2025.

Although details are slim, the application is for motor vehicles, specifically trucks, vans, utility vehicles, and electric cars.

The trademark, first found by Ford Authority, comes just over a week after CEO Jim Farley said the company would reveal “plans to design and build breakthrough electric vehicles in America,” on August 11.

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Ford is expected to outline plans for its advanced new EV platform, promising to cut costs while drastically improving efficiency.

The first vehicle based on the platform is expected to be a midsize EV pickup, which many believed would arrive as the electric Ford Ranger. Ford has already revived several iconic names in Europe with electric versions, including the Explorer, Capri, and Puma.

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Ford’s electric vehicles in Europe from left to right: Puma Gen-E, Explorer, Capri, and Mustang Mach-E (Source: Ford)

Will the Ranchero be next? The Ranchero was ahead of its time, combining the style of a coupe with the utility of a pickup truck.

Ford sold from 1957 to 1979, calling it “More than a Car, More than a Truck.” Its success actually led GM to develop the Chevrolet El Camino.

Ford-Ranchero-EV-pickup
1968 Ford Ranchero GT pickup (Source: Ford)

The company opened its new EV Design Center in Long Beach, California, this week, where it will bring the midsize electric pickup to life. It’s expected to arrive in 2027. Ford’s “skunkworks” team, led by Tesla’s former engineer Alan Clarke, has grown over the past year with former Tesla, Rivian, and Apple employees

What do you think? Would you buy an electric Ford Ranchero? You might be able to soon. We will learn more on August 11 during Ford’s event. We’ll keep you updated with the latest.

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