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Xpeng’s Loss Shrinks During The Fourth Quarter

Xping posts lower-than-expected quarterly loss, taking advantage of price controls in light of weak production

Chinese electric car maker Xpeng announced its fourth-quarter loss, which was lower than Wall Street expectations, as the company benefited from controlling prices to meet supply chain challenges and high costs, but the company’s shares fell slightly during morning trading.

Xpeng lost $202 million during the quarter, or 22 cents per share on an adjusted basis, and collected revenue of $1.34 billion, better than analysts’ expectations of a loss of 33 cents per share.

Gross profit margin in Xpeng’s auto business, which is an important figure for observers, fell to 10.9% during the fourth quarter from 13.6% during the third quarter due to higher costs associated with supply chains and parts, but CEO He Xiaoping noted This is still a significant improvement over the 3.5% profit margin that the company recorded during the fourth quarter of 2020.

During 2021, Xpeng, like most automakers, had to face production disruptions due to ongoing supply chain bottlenecks, especially the semiconductor chip shortage.

Xpeng delivered 60,569 P7 vehicles during 2021, and deliveries of P5 vehicles, which began production during the fourth quarter, reached about 7,865 vehicles over the past year, and for the current quarter, Xpeng expects to deliver 33,500-34,000 vehicles, representing a growth of more than 150 % compared to the first quarter of 2021. Read more [Tesla Cmpetitor Xpeng Launches Its New Car in Europe].

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