Xpeng forecasts upbeat quarterly revenue on strong EV deliveries
(Reuters) -China's XPeng on Wednesday forecast second-quarter revenue above Wall Street estimates, betting on growing demand for its lower-priced electric vehicles.
U.S.-listed shares of the company rose 6.3% in premarket trading.
XPeng is one of the few automakers to weather China's hypercompetitive EV market, but is yet to turn a profit. In the first quarter, the company reported surging vehicle deliveries, improving gross margin and a narrower loss.
"Despite seasonality for auto sales, our quarterly deliveries hit a new historical high, making us the top-selling automaker among emerging EV companies," CEO Xiaopeng He said.
In August, the company had launched MONA M03, a mid-sized sedan that competes with BYD's Seagull and Dolphin, as well as the higher-priced Tesla Model 3.
The Guangzhou-based company expects to deliver between 102,000 and 108,000 vehicles in the second quarter, which is about 237.7% to 257.5% higher than a year ago.
XPeng forecast second-quarter revenue of 17.5 billion yuan to 18.7 billion yuan, the midpoint of which is above analysts' average estimate of 16.85 billion yuan, according to data compiled by LSEG.
For the first quarter of 2025, Xpeng delivered 94,008 EVs, representing a 330.8% increase compared with the same period last year.
Gross margin stood at 15.6% for the first quarter compared with 12.9% from a year earlier.
Last month, XPeng unveiled its upscale X9 minivan, starting at 359,800 yuan ($49,231), equipped with advanced automated-driving systems.
The company also said it expects to achieve mass production of vehicles with Level 3 autonomous driving features in China by the end of 2025 — a significant step up from the Level 2 systems widely in use.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Wind opponents sue Trump administration to block New York wind project
By Nate Raymond (Reuters) -Fishing companies and offshore wind opponents filed a lawsuit on Tuesday challenging the Trump administration's decision to reverse course and allow construction to resume on Empire Wind, a $5 billion wind farm project off New York's coast. Protect Our Coast New Jersey, Clean Ocean Action, ACK for Whales and 12 fishing industry participants in a lawsuit filed in federal court in Trenton, New Jersey, sought to reinstate a stop work order Interior Secretary Doug Burgum issued in April halting construction of Equinor's wind project. Burgum issued that order after Republican President Donald Trump on his first day back in office on January 20 directed his administration to halt offshore wind lease sales and stop the issuance of permits, leases and loans for both onshore and offshore wind projects. He did so while also moving to ramp up the federal government's support for the fossil fuel industry and maximize output in the United States. Trump as a candidate last year promised to end the offshore wind industry. But weeks after Burgum signed the stop-work order, the administration in a turnabout on May 19 allowed work to resume on Empire Wind, which is being developed by Norway's Equinor and is expected to provide power for half a million homes from 2027 onward. The administration did so in a compromise with New York that could also see canceled plans for a gas pipeline revived. Burgum said he was encouraged that New York Governor Kathy Hochul will now allow new gas pipeline capacity to move forward. Tuesday's lawsuit argued that the U.S. Bureau of Ocean Energy Management did not adhere to the requirements of the Administrative Procedure Act by failing to provide a basis for restoring the work permits. Bruce Afran, the plaintiffs' lawyer, said the administration had properly recognized the lack of investigation about serious environmental harm from Equinor's project. "The administration correctly pulled the Empire Wind work permit because of these concerns and had no basis to reinstate the work orders a month later," he said in a statement. "This lawsuit seeks to restore the stop work order." Equinor declined to comment on the lawsuit itself but in a statement said the project "has undergone years of rigorous permitting and studies, and secured all necessary federal, state and local approvals to begin construction in 2024." The agency did not respond to a request for comment.
Yahoo
16 minutes ago
- Yahoo
Rusty Taco seeks liquor license in Rockford for first Illinois location
ROCKFORD, Ill. (WTVO) — , a Texas-based fast-food chain, is seeking a liquor license to open a location in Rockford. The company has multiple locations across the United States, but the Rockford restaurant would be . An application filed with the City of Rockford Liquor and Advisory Board requests a permit to sell liquor in conjunction with a sit-down restaurant to be located at 6905 E. State Street, at the corner of E. State and Perryville Road. The chain sells seafood, beef, chicken, pork, and vegetarian tacos and bowls, along with street taco bowls, burritos, breakfast tacos, breakfast bowls, nachos, deserts, and more. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
16 minutes ago
- Yahoo
China calls on WTO for greater oversight on unilateral tariffs
BEIJING (Reuters) -China's commerce minister has called on the World Trade Organisation to strengthen supervision over unilateral tariffs, and put forward objective and neutral policy proposals, the ministry said on Wednesday. At a WTO ministerial meeting in France, Commerce Minister Wang Wentao reiterated China's stance on upholding a multilateral trading system and said WTO has the country's backing for a more important role in global economic governance. Wang also met with European Trade Commissioner Maros Sefcovic and had a "pragmatic and frank" discussion with his Canadian counterpart.
