XPeng Succumbed To Tesla's Price War But Rising Deliveries Provide Hints Of Recovery
Portfolio Pulse from Upwallstreet
XPeng Inc's Q2 report showed a significant loss due to the price war initiated by Tesla Inc, causing XPeng's U.S. shares to drop 7% in pre-market trade. The company's gross margin turned negative 3.9% due to inventory writedowns of the G3i crossover sports utility vehicle. However, XPeng's vehicle deliveries rose 27% quarter over quarter, and the company expects to deliver between 39,000 and 41,000 vehicles in Q3. XPeng is also working with Volkswagen on developing two EVs for the Chinese market.
August 18, 2023 | 2:37 pm
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NEGATIVE IMPACT
XPeng's Q2 report showed a significant loss due to the price war initiated by Tesla, causing its U.S. shares to drop 7%. However, vehicle deliveries rose 27% QoQ and the company is working with Volkswagen on new EVs.
XPeng's Q2 report showed a significant loss due to the price war initiated by Tesla, causing its U.S. shares to drop 7%. However, the company's vehicle deliveries rose 27% quarter over quarter, and the company expects to deliver between 39,000 and 41,000 vehicles in Q3. XPeng is also working with Volkswagen on developing two EVs for the Chinese market, which could potentially boost its performance in the future.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Tesla's price war has negatively impacted XPeng's Q2 earnings, causing a significant loss for the company.
Tesla's price war has negatively impacted XPeng's Q2 earnings, causing a significant loss for the company. However, it's unclear how this price war is affecting Tesla's own performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
Volkswagen has bought a 4.99% stake in XPeng for $700 million and will be working with the company on developing two EVs for the Chinese market.
Volkswagen's investment in XPeng and their collaboration on developing two EVs for the Chinese market could potentially boost both companies' performance in the future.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 60