(Reuters) -Chinese electric vehicle maker XPeng forecast fourth quarter revenue above Wall Street estimates on Tuesday, as a refreshed product line-up and improving domestic market help the company see higher demand.
U.S.-listed shares of the company were up 5.1% in premarket trading.
XPeng is seeing a steady demand for its MONA M03 mid-sized sedan, having delivered more than 10,000 units for the second straight month in October. MONA M03 competes with BYD's Seagull and Dolphin and the higher-priced Tesla (NASDAQ:TSLA) Model 3, and was launched in a bid to grab market share from BYD, Nio, and Tesla.
After months of decline, the passenger vehicle sales of China — the largest auto market in the world — rose for a second straight month in October.
XPeng expects fourth quarter revenue between 15.3 billion yuan and 16.2 billion yuan, compared with analysts' average estimate of 14.77 billion yuan, according to data compiled by LSEG.
XPeng unveiled its P7+ executive sedan earlier this month, which became its first vehicle to incorporate large AI models that are trained on massive amounts of data.
The P7+ received over 31,000 non-refundable orders in three hours following the launch, and according to analysts at Jefferies, marks the beginning of the company's efforts to revamp its product line-up.
XPeng expects to deliver between 87,000 and 91,000 vehicles in the fourth quarter, up 44.6% to 51.3% from a year ago. It delivered 46,533 vehicles in the third-quarter, up 16.3% from a year ago.
Revenue for the third quarter ended Sept. 30 was 10.10 billion yuan ($1.39 billion), beating estimates of 9.77 billion yuan.
It reported a loss of 1.90 yuan per ADR, while analysts were expecting a loss of 1.71 yuan per ADR.
($1 = 7.2434 Chinese yuan renminbi)