Written by Cláudio Afonso | LinkedIn | X
XPeng, the Guangzhou-based electric vehicle (EV) maker, announced its third-quarter earnings results on Tuesday, reporting record revenue and gross margin as sales reached new highs between July and September.
The company posted a gross margin of 15.3%, an improvement from 14% in the previous quarter and a major turnaround from negative 2.7% in the same period last year, reflecting an 18-percentage-point increase year-over-year.
Vehicle margin reached 8.6% in the third quarter of 2024. This marks a notable improvement from negative 6.1% in the third quarter of 2023 and 6.4% in the previous quarter.
“Our core competences and execution capabilities have been significantly transformed. The successful launch of M03 and P7+ marks the beginning of a strong growth cycle underpinned by our major product cycles,” XPeng’s CEO Xiaopeng He said in a statement.
For the fourth quarter of 2024, the company expects vehicle deliveries to range between 87,000 and 91,000 units, representing a year-over-year increase of approximately 44.6% to 51.3%.
The company also forecasts total revenue of 15.3 billion yuan to 16.2 billion yuan, an increase of approximately 17.2% to 24.1% compared to the same period in 2023.
As of the time of writing, XPeng shares are trading 4.20% higher at $13.56 before the opening bell.
Last week, the company’s founder and CEO Xiaopeng He said that monthly production capacity for the Mona M03 model will reach 20,000 units by the Chinese New Year, which takes place between January 28 and February 4.
Production capacity for the model increased by 40% this month, the chief executive said during media day at the Guangzhou Auto Show, after the company registered the strongest order backlog in its history. Earlier this month, the record was again broken by the new flagship sedan, the P7+.
Written by Cláudio Afonso | LinkedIn | X
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