Shares in Chinese electric vehicle maker Xpeng fell today, Wednesday, after the company announced results that contradicted expectations and sales were expected to decline.
The company’s revenue in the first quarter of 2023 was down 50% year-on-year to 4.03 billion Chinese yuan ($571.6 million), compared to an expected 5.19 billion yuan.
Xpeng posted a net loss of 2.34 billion yuan versus an expected 1.9 billion yuan. This is more than the 1.7 billion yuan loss recorded in the same quarter of 2022.
Xpeng expects its second-quarter shipments to be between 21,000 and 22,000 units, representing a year-on-year decline of 36.1% to 39%.
The company also expects second-quarter revenue of 4.5 billion to 4.7 billion yuan, down 36.8-39.5% from last year.
Xpeng has been impacted by a number of factors in its home market in China as the country abruptly lifted its strict coronavirus measures in December. However, China’s economic recovery was unbalanced due to mixed data. This has affected consumer spending.
The company is facing stiff competition in the electric vehicle market from other startups such as Li Auto and Nio, as well as Tesla and BYD.
Xpeng shipped 18,230 vehicles in the first quarter, down about 47% from the same period last year.
Over the past few months, the company has reorganized its management structure as it prepares for the release this year of its new sports car called the G6 to revitalize sales and its brand image.
