Xpeng Q3 2020 Earnings – the Company Posts Mixed Results After Having Listed on the NYSE Back in August 2020

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Xpeng (NYSE:XPEV) has come under the spotlight of investors in recent days as the stock continues to add to its sizable rally since August 2020, when the company floated its shares on the New York Stock Exchange (NYSE). Today, the company is again in focus as it gears up to announce its earnings for the third quarter of 2020.

Xpeng (NYSE: XPEV) Financial Scorecard

For the three months that ended on the 30th of September, Xpeng earned $293.1 million in revenue, exceeding consensus expectations by 5 percent and registering an annual increase of 342.5 percent.

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(All figures are in millions of dollars; consensus numbers have been sourced from here)

On a more granular level, Xpeng delivered 8,578 EVs during the quarter, consisting of 6,210 P7 sedans and 2,368 G3 SUVs. The cumulative quarterly number represents an annual increase of around 266 percent. Xpeng is expected to produce 22,000 EVs over the course of FY 2020.

Xpeng also reported $256.889 million in operating income. Moreover, its cash balance during the quarter stood at $1.8 billion.

(All figures are in millions of dollars)

Finally, the company earned -$0.32 in non-GAAP EPS, missing consensus expectations by $0.14.

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(All figures are in dollars)

Xpeng has also disclosed the following operational highlights for the pertinent quarter:

  • Deliveries of vehicles reached 8,578, representing an increase of 265.8% from 2,345 in the third quarter of 2019 and an increase of 165.7% from 3,228 in the second quarter of 2020.
  • Deliveries of the P7reached 6,210, compared with 325 in the second quarter of 2020.
  • Among the total P7s delivered for the quarter, 98% can support XPILOT 2.5 or XPILOT 3.0.
  • As of September 30, 2020, XPeng’s physical sales and service network consisted of atotal of 116 stores and 50 service centers, covering 58 cities.
  • As of September 30, 2020, Xpeng-branded super charging stations expanded to 135, covering 50 cities.
  • New Smart EV Manufacturing Base: On September 28, 2020, the Company announced the cooperation agreement with Guangzhou GET Investment Holdings Co., Ltd, a wholly owned investment company of Guangzhou Economic and Technological Development Zone, for developing and building a new Smart EV manufacturing base for XPeng in Guangzhou. Pursuant to the cooperation agreement, Guangzhou GET Investment will invest RMB4 billion to support the development and construction of the Smart EV Manufacturing Base in the GETDZ. The Smart EV Manufacturing Base is expected to commence production by December 2022 and will provide a comprehensive range of facilities for R&D, manufacturing, vehicle testing, sales and other smart mobility functions.

Investors have reacted positively to Xpeng’s earnings announcement, with the stock registering a gain of over 11 percent in pre-market trading.

As a refresher, Xpeng currently retails two EV models – the G3 SUV and the P7 sedan. The G3 offers a maximum range of 520 km, a fast DC charging time of 30 minutes to recharge the battery from 30 percent to 80 percent level, 0 – 100 km/h acceleration in 8.6 seconds, and a maximum speed of 170 km/h. For its part, the P7 offers a maximum range of 706 km (with an extra range pack), a charging time of 670 km, a fast DC charging time of 31 minutes to recharge the battery from 30 percent to 80 percent level, and a maximum speed of 170 km/h. Readers can view the detailed specs of each car here and here. The G3 starts retailing at 146,800 Yuan ($22,200), while the P7 can be purchased by customers at a minimum price of 229,900 Yuan ($35,000).

The company also continues to receive bullish endorsements from Wall Street. As an illustration, just yesterday, Bank of America (NYSE:BAC) published a bullish outlook for Xpeng, raising the stock price target to $36.20 while noting:

"We raise our 2022E volume sales by 5% mainly to reflect stronger confidence in XPeng's continuous model launch and volume growth in 2022. We believe its effort in improving electric vehicle performance and enhancing user experience on connectivity and also autonomous driving on the Xmart OS and XPILOT should help improve its brand image."