XPeng Inc. (XPEV) announced wider-than-expected loss for the third quarter. However, its revenue skyrocketed more than 300 percent in the quarter, sending its shares up more than 8 percent in the pre-market trading Thursday.
The China-based electric vehicle manufacturer posted a loss of CNY 1.15 billion for the three-month period ended September 30, as compared to CNY 776.3 million in the comparable period last year. Revenue for the quarter climbed 342.5 percent to CNY 1.99 billion. Gross margin in the quarter improved to 4.6 percent, as compared to a negative 10.1 percent, one year ago.
The company said that it delivered 8,578 vehicles in the quarter, representing a surge of 265.8 percent from the same period last year. Deliveries of Xpeng P7 jumped to 6,210 in Q3, as compared to just 325 in the second quarter.
XPeng is seeing strong demand for its vehicles in the current quarter. It delivered 3,040 vehicles in October, up 229 percent from the same month of 2019.
Speaking on the results, the company’s President Dr. Brian Gu said “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.”
Looking forward, XPeng expects to deliver nearly 10,000 vehicles in the fourth quarter, which translates to a surge of 210.8 percent from the same quarter last year. Revenue in the current quarter is expected to climb 243.7 percent on year-over-year basis.
XPeng ($50.48|-1.29%) stock is trading near its 52-week high on heavy volume. Overall, XPEV share price remained relatively flat until November, during the which the stock rose to new highs. The stock has climbed nearly 95 percent so far this month.
Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.