Xpeng Motors Q1 Earnings Highlight: Achieves 12.9% Gross Margin, Eyes European Market

Xpeng Motors has put its first-quarter results in the spotlight, with a 62.3% year-over-year gain and a significant decrease in adjusted net loss from 2.21 billion Yuan in the same period last year to 1.41 billion Yuan.

Breaking out the Numbers

Xpeng's first-quarter deliveries reached 21,821, representing a 19.7% YoY increase. Gross revenues totaled 6.55 billion Yuan, representing a 62.3% YoY increase, despite a 49.8% quarter-over-quarter drop.

Even while net losses decreased to 1.37 billion Yuan from 2.34 billion Yuan the previous year, Xpeng's Q1 gross margin increased significantly to 12.9%, representing an 11.2 percentage point YoY gain and a 6.7 percentage point QoQ jump.

Flattening Future Horizons

Against this context, Xpeng Motors anticipates a solid product cycle, with a strong projection for the second quarter. The company intends to deliver between 29,000 and 32,000 vehicles and generate revenues of 7.5 to 8.3 billion Yuan.

Over the next three years, Xpeng wants to add elite talent in sectors such as brand marketing and design, as well as launch many new goods with prices ranging from 100,000 to 400,000 yuan.

Xpeng’s European Vision

The Chinese automaker's European goal is further realized with the imminent debut of Xpeng's first A-grade pure electric sedan from the MONA series next month, which confirms its official introduction and scheduled mass delivery in Q3. By the end of this year, Xpeng Motors hopes to have a new B-grade pure electric vehicle. This new addition, together with MONA models contributing to volume, instills high confidence in YoY growth rates for the fourth quarter, according to Xpeng CEO He Xiaopeng.

Echoing the favorable results and robust projection, Xiaopeng stated that, despite the obstacles of the second quarter, the impacts of many reforms are already being felt, and the outlook for the rest of the year is likewise promising. By October, Xpeng is expected to enter the fast track for expedited development. Despite falling short of market expectations this quarter, the automaker's acceptance of the European market's possibilities heralds a potentially exciting chapter in the global auto industry.