XPeng, the Chinese electric-vehicle manufacturer, experienced a larger net loss in the second quarter, primarily due to decreased sales. However, the company anticipates a rebound in revenue for the third quarter.
During Q2, XPeng recorded a net loss of 2.80 billion yuan ($384.5 million), compared to a net loss of CNY2.70 billion during the same period last year. This surpasses the estimated net loss of CNY2.31 billion according to analysts polled by FactSet.
The gross margin in XPeng’s vehicle-sales business declined from a positive 9.1% to a negative 8.6% year-on-year. This decrease can be attributed to inventory write-downs, increased sales promotions, and the expiration of electric vehicle (EV) subsidies.
XPeng’s revenue dropped 32% to CNY5.06 billion as vehicle deliveries decreased by 33% to 23,205 units. The quarterly revenue fell short of the estimated CNY5.17 billion from the FactSet poll.
Looking ahead, XPeng projects that deliveries in the third quarter will increase by approximately 32%-39% compared to the previous year, totaling 39,000-41,000 units. Additionally, they anticipate a revenue growth of about 25%-32% to reach CNY8.5 billion-CNY9.0 billion.