Chinese electric vehicle maker Xpeng reported a wider-than-expected loss in the third quarter. Revenue for the quarter also fell below the expectations of analysts on rising competition and a tougher macroeconomic environment. The company’s shares were, however, up 10 percent in premarket trade in the US.
For the third quarter, the EV maker reported revenue of 6.82 billion Chinese yuan, or $960.9 million. Analysts, on the other hand, expected revenue of 7.26 billion Chinese yuan, according to Refinitiv. Revenue was up 19.3 percent year-on-year. Xpeng reported a net loss of 2.38 billion Chinese yuan, compared with analysts’ expectation of 2.09 billion Chinese yuan, according to Refinitiv. Net loss was also wider than the 1.59 billion Chinese reported in the same period a year ago.
In the third quarter, the company delivered 29,570 electric vehicles, 15 percent up from what it delivered a year ago. It was however a 14 percent decrease from its second-quarter numbers. The company delivered 5,101 vehicles in October, a drop from the 8,468 vehicles delivered in September.
Like many other companies in China, Xpeng faced challenges resulting from the Covid lockdowns in the Asian country. The company, like other vehicle makers, has also been dealing with the increase in the cost of materials which forced it to hike the price of its cars earlier this year.
Xpeng expects to deliver between 20,000 and 21,000 cars in the fourth quarter. This would mean a year-over-year decrease of between 49.7 percent and 52.1 percent approximately.
The company has seen its shares drop this year. Its shares are down 85 percent as more investors turn away from Chinese stock due to the slowdown in its economy and a global rise in interest rates.