China’s ambitious EV maker XPeng posted a net loss of $342 million last quarter, with revenue down 40% to $746 million. The company expects EV shipments to drop 48% year-over-year this quarter. .
In total, by the end of 2022, XPeng managed to deliver 120,757 machines, which is more than half the original plan. Shares of this Chinese electric car maker lost 80% in a year. The company had to push back the deadline for reaching operating break-even to 2025. In the current quarter, XPeng expects to ship between 18,000 and 19,000 vehicles to customers, with revenue ranging from $580 million to $610 million, down 45% on average from the same period in 2022. In quantitative terms, deliveries of electric vehicles will decrease by 48% compared to the first quarter of last year.
According to analysts at Bloomberg Intelligence, in the next year and a half to two years, the need to bring new models to the market and expand production will negatively affect XPeng’s profitability. At the same time, the corresponding steps of Tesla are forcing XPeng to reduce the prices of their electric vehicles, and entering foreign markets requires additional resources. The company does not leave intentions to release aircraft, as well as to develop an autopilot for ground vehicles. All kinds of relevant tests are now actively underway.
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