XPeng’s Quarterly Revenue Jumps 6X, Vehicle Deliveries Up Almost 5X

Chinese smart electric vehicle provider XPeng Inc. (XPEV) announced its Q1 results. Total vehicles delivered by the company jumped about 487% to 13,340 from 2,271 in the corresponding period of the previous year.

On the back of deliveries of the P7 model, total revenue increased 616.1% year-on-year to $450.4 million and came in ahead of consensus estimates of $441.24 million.

Importantly, XPeng’s gross margin expanded sequentially to 11.2% from last quarter’s 7.4%. The company had a negative gross margin of 4.8% in the same period last year.

Net loss per share came in at $0.13, which was lower than the estimated net loss per share of $0.17.  

XPeng Chairman and CEO He Xiaopeng said, “The first quarter kicked off a great start to 2021 with record-breaking vehicle deliveries notwithstanding seasonally slower demand for automobiles and the semiconductor shortage.” (See XPeng stock analysis on TipRanks)

Xiaopeng added, “Our strong momentum in the quarter was propelled by our industry-leading full-stack autonomous driving technology, solid differentiated product strategy, and our vision to lead Smart EV development and transformation.”

Looking ahead at Q2, XPeng sees vehicle deliveries to be in the range of 15,500 and 16,000. It estimates total revenue to be between RMB3.4 billion and RMB3.5 billion.

Recently, Deutsche Bank analyst Edison Yu reiterated a Buy rating on the stock with a $48 price target (93.9% upside potential).

After meeting the top brass of XPeng, Yu noted that the company remains positive on its demand trajectory in the near term. He does not expect supply chain constraints to have a material impact on its product launches in 2021.

Consensus among analysts is that XPeng is a Strong Buy based on 6 unanimous Buys. The average analyst price target of $48.68 implies 99.6% upside potential. Shares have dropped about 44.65% over the past year.

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