XPeng's Q3 net loss narrowed by 53.5%, Q4 delivery guidance hits all-time high | Earnings report insights

With the support of the two major bestsellers, the Xiaopeng MONA M03 and Xiaopeng P7+, as well as the highest overseas export sales among new forces, Xiaopeng Motors has provided the strongest single-quarter delivery guidance in history, expecting to deliver 87,000 to 91,000 new vehicles in Q4.

On the 19th, Xiaopeng Motors announced its third-quarter financial report:

• Revenue of 10.1 billion yuan, a year-on-year increase of 18%, estimated at 9.91 billion yuan;
• Net loss of 1.81 billion yuan, compared to 3.89 billion yuan in the same period of 2023, a year-on-year narrowing of 53.5%, with a projected loss of 1.28 billion yuan in Q2 2024;
• Adjusted loss per share of 0.81 yuan, compared to a loss of 1.61 yuan per share in the same period last year;
• Total delivery of 46,533 smart electric vehicles in the third quarter, a year-on-year increase of 16.3%, exceeding the delivery target;
• Gross margin of 15.3%, setting a new historical high for a single quarter, an increase of 18 percentage points year-on-year.

Xiaopeng Motors expects Q4 revenue to be between 15.3 billion yuan and 16.2 billion yuan, with expected delivery volume of 87,000 to 91,000 vehicles.

Xiaopeng Motors Vice Chairman and Co-President Gu Hongdi stated:

“Through cost reductions driven by technology and a significant month-on-month increase in sales, our gross margin reached a historical high of 15.3%, achieving profit margin improvement for the fifth consecutive quarter. Our main product cycle will not only drive sales growth but also bring healthy gross margins and cash flow.

This strong financial foundation will enable us to continue investing in the research and development of artificial intelligence technology and provide high-quality products and services to our customers.”

Strong Growth in Revenue and Delivery Volume

In this quarter, Xiaopeng Motors showed strong growth in both revenue and delivery volume. The financial report shows that Xiaopeng Motors' total revenue in the third quarter was 10.1 billion yuan, of which:

Revenue from vehicle sales was 8.8 billion yuan, a year-on-year increase of 12.1% and a quarter-on-quarter increase of 29.0%;

Service and other revenue was 1.31 billion yuan, a year-on-year increase of 90.7%;

The growth in revenue was mainly due to the increase in delivery volume, with a total of 46,533 vehicles delivered in the third quarter, an increase of 16.3% year-on-year.

In the third quarter, Xiaopeng Motors' R&D expenses reached 1.63 billion yuan, a year-on-year increase of 25.1%, reflecting the company's continued investment in new model development and technological innovation.

In terms of overseas exports, Xiaopeng Motors' sales reached a new high, ranking first among new force companies in export volume. Among them, overseas sales in Q3 increased by 70% quarter-on-quarter, accounting for 15% of the company's total sales.

Currently, Xiaopeng Motors has 639 sales stores, covering 206 cities nationwide. Xiaopeng has 1,557 self-operated charging stations, with 259 new self-operated stations added in the third quarter, and 6 new liquid-cooled S5 super-fast charging stations launchedOn November 7th, the "world's first AI car" XPeng P7+ was officially launched and achieved mass production and delivery within the month. According to XPeng Motors, the new car is equipped with XPeng's self-developed AI Tianji 5.4.0, end-to-end large model, and AI Eagle Eye intelligent driving solution.

XPeng Motors Chairman and CEO He Xiaopeng commented on this quarter's financial report:

"Our core competitiveness and execution capability have undergone a significant transformation. The successful launch of M03 and P7+ marks our entry into a strong growth cycle supported by major product cycles. I believe the next decade will be the era of artificial intelligence."

"I am confident in leading XPeng Motors to become a global artificial intelligence automotive company and accelerating the large-scale application of artificial intelligence in the mobility sector."