Chinese electric vehicle maker XPeng Motors is rising today despite weak fourth-quarter earnings.
Its adjusted earnings per share of $0.37 were two cents shy of expectations. And revenues of $750 million were down 40% YoY and $24.4 million short of the consensus view. 🔻
Quarterly vehicle deliveries fell roughly 50% YoY to 22,204, with its vehicle margin falling 590 basis points. China’s electric vehicle pricing war has eaten into its margins, and China’s shutdown impacted production for most of last year. Like other players, the company is refocusing its bets and improving operational efficiency to reduce costs. 🏭
Regarding growth drivers, management noted that smart technologies would play a big role in the industry and that the company intends to lead in the space. They believe the company is well-positioned and can use this advantage to grow market share. Analysts note that’s a longer-term advantage and will unlikely produce short-term results. 🤖
Looking ahead, the company expects to deliver 18,000 to 19,000 vehicles in Q1, with total revenues of $580.4 to $609.4 million. 🚗
Despite the lackluster results and weak guidance, the market responded positively. $XPEV shares rose 6% on the day. 🤷
