XPeng (XPEV) - Get Report shares rose on Monday after the Chinese maker of electric cars reported a narrower fourth-quarter loss and vehicle deliveries that beat its own expectations amid stronger consumer demand for electric cars, particularly in China.
XPeng said it lost 787.4 million yuan ($121 million) in the fourth quarter vs. a loss of 997.1 million yuan in the same period a year ago. On a per-depositary-share basis, Xpeng lost an adjusted RMB0.95 vs. RMB6.28 per ADS a year ago.
The Guangzhou-based electric carmaker, which went public in August, reported soaring car sales for the quarter, with total revenue jumping almost 350% to 2.85 billion yuan and total vehicle deliveries rising three-fold.
XPeng said it delivered 12,964 of its G3 sports utility vehicles and P7 electric sedans in the December quarter, more than the 10,000 it forecast in the third quarter. Annual deliveries of the two models it makes totaled 27,041, more than double 2019. Deliveries in the first two months of 2021 were 8,238.
XPeng expects that figure to be around 12,500 for the first quarter, meaning revenue for the three months ending March 31 may reach 2.6 billion yuan, a year-over-year increase of around 530%.
The figures round out a strong 2020 for XPeng, whose New York-listed shares are up 87% over the past 12 months even after taking a battering in recent weeks amid a general rout in EV stocks that has cut 30% off of Tesla’s (TSLA) - Get Report stock price.
Wedbush analyst Dan Ives wrote in a recent note that China could see “eye-popping demand into 2021 and 2022” with Tesla’s Shanghai factory a major competitive advantage and domestic players like Warren Buffett-backed BYD, Li Auto (LI) - Get Report, NIO (NIO) - Get Report and XPeng also “firing on all cylinders.”
But growing pains for all will likely persist. XPeng in late January recalled 13,399 G3 electric SUVs due to an inverter issue that may cause the vehicle to lose power and pose a safety risk, according to China's State Administration for Market Regulation.
At last check, XPeng's ADRs were up 0.21% at $28.11.