- XPeng delivered more EVs in the third quarter, but higher costs led to a wider loss in the period.
- The Chinese firm's results were impacted by a big jump in cost of sales and inventory write-downs.
- XPeng ADRs were trading well below their all-time high set shortly after the company began publicly trading in the U.S. three years ago.
American depositary receipts (ADRs) of XPeng (XPEV) dropped before paring back losses in early trading Wednesday after the Chinese electric vehicle (EV) maker reported its losses increased 39% even as it sold more cars.
XPeng posted a third quarter fiscal 2023 loss of 3.89 billion Chinese yuan ($530 million), up from 2.8 billion yuan ($390 million) in the previous quarter. Revenue gained 25% from a year ago to 8.53 billion yuan ($1.17 billion), which fell short of estimates.
The company noted cost of sales jumped 48.4% from 2022 to 8.76 billion yuan ($1.20 billion) because of higher vehicle deliveries and inventory write-downs.
XPeng delivered 40,008 EVs in the period, 72.4% more than in the second quarter. The company anticipates 59,500 to 63,500 deliveries in the current quarter, well above forecasts.
XPeng Co-President Hongdi Brian Gu said that the company expects even stronger free cash flow this quarter, ”marking the starting point of our journey towards long-term scalable profitability.” CEO He Xiaopeng added that the business changes XPeng made earlier this year “will yield more positive results in 2024 and beyond.”
ADRs of XPeng were trading well below their all-time high reached soon after the firm began publicly trading in the U.S. in August 2020.