Shares of XPeng Inc. (NYSE: XPEV) surged 28% intraday Thursday after it posted revenue that more than quadrupled, running over analysts’ estimates for the third quarter.
The Chinese electric vehicle maker posted sales of $293.1 million, up 343% year-over-year on a loss of 16 cents per share. Analysts were looking for $284 million in revenues on a loss of 18 cents per share.
In total, XPeng delivered 8,578 vehicles in the quarter, up 266% from the same period of the preceding year. Deliveries for its most popular car in the quarter, the P7 hit 6,210 units; the vehicle is described as a long-range battery-powered mid-sized sedan. As of October, a “cumulative total” of 8,639 P7’s have been delivered.
“The robust results we achieved in the third quarter, from delivery numbers, production ramp-up, and advancement in R&D, to expansion plans for the new factory and overseas business, reflect the strong market appeal of our products, the resonance of our strategy, and our ability to adeptly execute our operational plan,” Brian Gu, the vice chairman and president of XPeng, said in a statement today.
The news not only had a positive impact on its stock but its Chinese EV rivals as well. By midday, shares of Nio (NYSE: NIO) rose 11%, while Li Auto (Nasdaq: LI) jumped 21%, as investors continue to enjoy the ride in EV makers.
But still, profitability remains a concern when looking at EV companies. However, investors know that and do not expect green bottom lines or large margins for a new smaller EV company like XPeng just yet. In comparison, the world’s most valuable EV maker and car company Tesla (Nasdaq: TSLA) posted gross margins of 23.5% for the third quarter, while XPeng’s just came in at 4.6%.
In the fourth quarter, XPeng is anticipating to generate roughly $333 million in sales, which would represent year-over-year growth of 211%, while delivering 10,000 vehicles.
Shares of XPeng have accelerated 187% to date from its IPO price of $15 in August.