Xpeng (XPEV) Q1 2023 earnings report: Deliveries forecast to fall

Shares of China Electric Vehicle Corporation Xpeng It fell on Wednesday after the company reported missing earnings and predicted a decline in auto sales.

Xpeng shares fell more than 11% shortly after the opening bell in the US.

Here’s how the company performed against Refinitiv consensus estimates for the first quarter:

• he won: 4.03 billion Chinese yuan ($571.6 million), compared to an expected 5.19 billion yuan. This is a 50% decrease year over year.
• net loss: 2.34 billion yuan, compared to an expected 1.9 billion. This was larger than the 1.7 billion yuan loss reported in the same quarter of 2022.

Xpeng expected deliveries of its vehicles to be between 21,000 and 22,000 in the second quarter, representing a year-on-year decrease of 36.1% to 39.0%.

The company also expected revenue to be between 4.5 billion yuan and 4.7 billion yuan in the second quarter, down between 36.8% and 39.5% year on year.

Xpeng has been affected by a number of factors in its domestic market in China. The country abruptly canceled its strict Covid-19 control measures in December. but, China’s economic recovery has been mixed with mixed data. This has affected consumer spending.

But the Guangzhou-based company also faces stiff competition in electric vehicles from other startups such as Lee Otto And New As well as well-established players such as Tesla Warren Buffett backed BYD.

Tesla It cut prices in China to stimulate demand which also affected Xpeng’s competitiveness.

Xpeng delivered 18,230 vehicles in the first quarter, down about 47% from the same period last year.

The company has reorganized its management structure and restructured the company over the past few months in hopes of unleashing growth.

“During the first quarter of 2023, we took actions to make critical changes to our strategy, organizational structure, and senior management team,” He Xiaoping, CEO of Xpeng, said in a statement.

“I am very confident our company will enter a virtuous cycle driving product sales growth, team morale, customer satisfaction, and brand reputation over the next few quarters.”

Xpeng is preparing to launch its new sports car this year called G6 in a bid to revive sales and its brand image.

“With the upcoming launch of the G6 and other new fuel product generating rapid sales growth, we expect cash flow from operations to improve significantly,” said Brian Gu, co-president of Xpeng, in a statement.