XPeng Narrows Loss as Revenue Surges, Sees Another Strong Quarter Ahead
The Guangzhou-based carmaker said Wednesday that its net loss was 664.0 million yuan, equivalent to $92 million, in the first quarter compared with 1.37 billion yuan a year earlier.
Total revenue more than doubled to 15.81 billion yuan from 6.55 billion yuan during the period, driven by strong sales, the company said. Its gross margin rose to 15.6% from 12.9% a year earlier and from 14.4% in the prior quarter.
XPeng said it expects deliveries to rise sharply to 102,000-108,000 vehicles in the second quarter, and revenue to rise to between 17.5 billion yuan to 18.7 billion yuan.
The company has stood out in China's competitive EV space thanks to its leading autonomous-driving technology and robust sales. High sales volumes have supported margins, bringing XPeng closer to profitability.
The company has yet to post a profit since it was founded in 2014, but market consensus is that it will likely become profitable in the fourth quarter this year, analysts say.
Write to Jiahui Huang at Jiahui.Huang@wsj.com
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