Key points:
- XPeng releases its October delivery report
- Deliveries decreased MoM and YoY
- XPeng shares are up 5% premarket
Shares of Chinese electric vehicle company XPeng (XPEV) have gained over 5% premarket Tuesday following a rally in Chinese equities and the company posting delivery numbers for October.
XPeng delivered 5,101 vehicles in October, almost half of its rival NIO's 10,059 vehicles delivered. It is also below the 8,468 vehicles delivered in September 2022 and nearly 50% below the 10,138 vehicles delivered in October 2021.
Electric vehicle production and deliveries in China have been impacted by macro headwinds such as Covid-related lockdowns in China and supply chain issues.
Also Read: The Best Electric Car Stocks to Buy
“We are accelerating customer deliveries of G9. Logistics and transportation capabilities are all in place for a steady production ramp-up beginning in November,” said He Xiaopeng, Chairman and CEO of XPENG. “We expect that P7 and G9, both built on the Edward platform, will comprise a larger proportion of total deliveries in the coming months.”
“I've recently optimized our organizational structures and am confident that we are better aligned with customer demands and market trends with our differentiated Smart EV products,” added He.
XPeng's October deliveries consisted of 2,104 P7s, 1,665 P5s, and 709 G3i's. They also included 623 G9 SUVs, while deliveries of the G9 started on October 27.
At the time of writing, XPeng shares are up 5.44% premarket Tuesday.
Analyst Ratings
Last week, Citi analyst Jeff Chung double-downgraded XPeng shares to Sell from Buy, assigning the stock a $3.18 price target. The analyst downgraded the stock after reducing the firm's forecasts for sales volumes, margins and free cash flow through 2024. Chung told investors that XPeng's model cycle faces “serious challenges” in 2023 and his 2022 and 2023 revenue forecasts are now 59% and 57% below consensus, while he doesn't expect XPeng to be breakeven until at least 2026.
