Chinese electric vehicle company XPeng Inc. (NYSE:XPEV) reported a beat on both earnings and revenue for the first quarter of 2024, sending its shares up 5.7% in early Tuesday trading.
The company's first-quarter earnings per share (EPS) came in at -RMB0.75, surpassing the analysts' estimate of -RMB2.06. Revenue also exceeded expectations, reaching RMB6.55 billion against a consensus estimate of RMB6.19 billion.
The company's revenue for the quarter represented a substantial increase of 62.3% from the same period last year, although it marked a 49.8% decrease from the previous quarter.
Vehicle deliveries saw a healthy 19.7% increase YoY, with a total of 21,821 vehicles delivered. Gross margin improved to 12.9%, up from 1.7% in the same quarter last year, indicating a stronger profitability trajectory for the company.
XPeng's guidance for the second quarter of 2024 sets the revenue target at RMB7.5-8.3 billion, which falls short of the analysts' consensus of RMB9.24 billion. The midpoint of this guidance range, RMB7.9 billion, is below the consensus, suggesting a cautious outlook for the upcoming quarter.
Chairman and CEO Xiaopeng He expressed confidence in the company's pioneering role in the mass production and application of AI-based models within the automotive industry. "We are confident that we can launch competitive models globally in a more efficient manner and thus spearhead the widespread adoption of AI-powered smart cars,” said Mr. He.
The company's cash position remains robust, with RMB41.40 billion in cash and cash equivalents, restricted cash, short-term investments, and time deposits as of March 31, 2024. This figure is slightly down from RMB45.70 billion at the end of the previous quarter.