Key Takeaways:
XPeng reported second-quarter revenue of 19.74 billion yuan ($2.91 billion), up 8 percent year-on-year but missing the 20.2 billion yuan consensus estimate.
"The back-to-back success of the GX and Mona L03 has increased our confidence in our upcoming new models," Chairman and CEO He Xiaopeng said in the earnings release.
Net loss widened 179 percent year-on-year to 1.34 billion yuan, though it narrowed 24.7 percent from the first quarter's 1.78 billion yuan loss. Gross margin reached 20.7 percent, above the 19.2 percent estimate and up from 17.3 percent a year earlier. Vehicle margin fell to 12.1 percent from 14.3 percent, which the company attributed to a product-generation transition.
The company guided third-quarter revenue of 21.7 billion to 23.4 billion yuan and deliveries of 115,000 to 121,000 vehicles, implying sequential growth of 11.3 percent to 17.1 percent. XPeng shares trade at $12.26 on the NYSE, with Macquarie's Eugene Hsiao setting a $19 price target and Barclays' Jiong Shao at $16.
Vehicle sales revenue reached 17.05 billion yuan, up 1 percent year-on-year and 55 percent sequentially, on deliveries of 103,295 units — up 0.1 percent year-on-year and 64.8 percent sequentially.
Services and other businesses were the key margin driver. Revenue from that segment jumped 93.9 percent year-on-year to 2.70 billion yuan, with margins expanding to 75.1 percent from 53.6 percent. XPeng said growth was driven mainly by technical R&D services provided to an automaker — widely understood to be Volkswagen — plus increased parts and accessories sales.
R&D expenses rose 32.1 percent year-on-year to 2.91 billion yuan on spending for new models and AI-related technologies. Selling, general and administrative expenses increased 15.2 percent to 2.50 billion yuan on higher marketing spend. XPeng held 40.48 billion yuan in cash and equivalents as of June 30, down 1.61 billion yuan from the end of March.
On a non-GAAP basis, the company posted a net loss of 1.24 billion yuan, versus 390 million yuan a year earlier and 1.69 billion yuan in the first quarter.
Earlier Monday, XPeng announced its robotics subsidiary Dogotix secured $900 million in conditional funding commitments at a $6.3 billion post-money valuation, with external investors including IDG Capital, Alibaba, Tencent and Gaorong Ventures.
The revenue miss could pressure XPeng shares in the near term, though the gross margin beat and strong services growth provide some offset. Investors will watch August and September delivery numbers — the company needs to average roughly 38,500 to 41,500 vehicles per month to hit its Q3 guidance — and the upcoming G9L launch for momentum signals.
This article is for informational purposes only and does not constitute investment advice.
