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The shares fell after Xpeng said its expected delivery for Q3 to be between 29,000 to 31,000 units.
Chinese electric vehicle (EV) manufacturer Xpeng (NYSE: XPEV) saw its shares close down 10.81% to $18.73 after the automaker missed expectations on its Q3 delivery guidance. The company recently released its Q2 2022 unaudited financial results, revealing a 97.7% revenue jump YoY. Also, the company said its quarterly vehicle deliverables grew 98% compared to the previous year. Xpeng stated that it delivered 34,4222 vehicles during the quarter, up from 17,389 delivered in the corresponding period of 2021. At the same time, the gross margin for the second quarter dropped 100 basis points YoY.
Xpeng Declares Disappointing Q3 Delivery Guidance
However, the shares fell after Xpeng said its expected delivery for Q3 to be between 29,000 to 31,000 units. Although the projected figure for the delivery of vehicles in Q3 is about a 13% to 20.9% increase YoY, it falls below analysts’ expectations. Analysts’ precision is that Xpeng will deliver 45,900 vehicles in the current quarter. The Chinese EV maker is affected by the Shanghai region’s shutdown. Although not all of its factors are in the location, the shutdown is affecting the company, especially its supply chain. Xpeng is facing a production issue, not a demanding challenge, which will affect its delivery in Q3. The company needs to source the raw material required for production and ultimately take more steps to attain profitability. Other EV makers are also struggling with the supply of raw materials necessary for the delivery of vehicles.
Not long again, the company intensified its plan to expand its reach internationally. The company set to expand in Europe by opening its first retail store. Reports showed that Xpeng would open the store in Stockholm, Sweden. The company is constantly making moves to push its presence beyond Chinese. Electric vehicles are gradually increasing in demand, and more continents are adopting their use. Following North America and China, Europe is the next suitable market for companies like Xpeng to establish their businesses. The EV company collaborated with local automotive dealer Bilia in its latest expansion. Under the agreement, Bilia will display Xpeng’s cars in its stores for sale.
Data complained by MarketWatch shows that Xpeng has been gathering losses for the past year. The company has dropped almost 54% in the last 12 months and has declined 62.79% since January. Despite its expansion into Europe, the Chinese carmaker has lost 7.82% in the last three months and shed 23.21% over the past month. In the last five days, Xpeng has plummeted 18.25%. The company is currently up 1.07% to $18.93 in extended trading.