XPeng Inc. ($XPEV) Earnings (Q1 FY22)

 XPeng Inc. ($XPEV) Earnings and Opinion:


XPeng is a company in the Consumer Cyclical sector and operates in the Auto Manufacturers industry. The company designs, develops, and manufacturers smart electric vehicles in China. XPeng was founded in 2015 and is currently headquartered in Guangzhou, China. The company was first traded on the stock market in 2020. 

XPeng EPS and Revenue (Q1 FY22):

  • EPS of -$0.28 beating expectations of -$0.29
  • Revenue of $1.18B beating expectations of $1.1B
XPeng Q1 Highlights:
  • Vehicle sales were up 149% Y/Y
  • Revenues up 152.6% Y/Y
  • Net loss of $268.3M
Opinion:
XPeng traded lower today due to a cut in their financial outlook. The company reported earnings before the market opened this morning. They had a pretty solid quarter, given the circumstances the company is facing right now. China seems to be going through a rough patch with their economy. Lockdowns are abundant and businesses are shutting down due to the lockdowns. Many companies are mirroring the challenges around businesses all over the world. XPeng is facing some challenges with supply chain issues currently. This was apparent in their recent financial results compares to last quarter. Last quarter they killed it with vehicle sales and delivered. It looked like this company could rise and become a leader in EV manufacturing in China. It has slowed down a little bit and the challenges seem to be staying. XPeng cut their earnings outlooks and this caused investors to get a little weary on EV makers. On a year-over-year basis, the company was able to have some insane growth numbers, which is solid for long-term investors. I can see some potential in this company for sure, and now may be the time to get into it. My biggest concern right now though, the economy in China. The Chinese economy is so unpredictable in these times and a lot of the companies are getting drilled right now. With increasing prices happening all over the globe, I can see the cost of producing EVs for XPeng to rise. This may cause sales to decrease due to affordability. Personally, I am going to stay out of this one and go into some more familiar Auto Manufacturers. I really like Tesla, and if EV projects for Ford and GM become a success, then a lot of return will become available for shareholders.

*Information from XPeng, Yahoo Finance, and Nasdaq

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