Shares of XPeng Inc. reversed course to trade sharply lower Thursday, after the China-based electric vehicle maker reported a wider first-quarter loss, although revenue rose sevenfold to beat forecasts, and said deliveries were expected to rise to another record.
The stock /zigman2/quotes/219982686/composite XPEV +2.24% sank 7.6% in afternoon trading, reversing an earlier gain of much as 3.7% at the intraday high of $25.68, as part of a broader selloff in its EV peers. The stock is on course to close at a six month low, and has tumbled 27.8% amid an 11-session stretch in which it has declined 10 times.
XPeng said its net loss for the quarter to March 31 widened to RMB786.6 million ($120.1 million), or RMB0.99 (15 cents) a share, from RMB649.8 million in the same period a year ago. Excluding nonrecurring items, such as share-based compensation expenses and change in fair value on derivative liabilities, adjusted net losses widened to RMB696.3 million ($106.3 million), or RMB0.88 (13 cents) a share, from RMB644.8 million a year ago.
The average estimate of two analysts surveyed by FactSet was for an adjusted net loss of RMB797.6 million.
Revenue rose 616.1% to RMB2.95 billion ($450.4 million), beating the average FactSet estimate of RMB2.67 billion, as vehicle deliveries jumped 487.4% to a record 13,340. Revenue from vehicle sales grew 655.2% to RMB2.81 billion ($428.9 million).
Gross margin improved to 11.2% from negative 4.8% a year ago.
“The first quarter kicked off a great start to 2021 with a record-breaking vehicle deliveries notwithstanding seasonally slower demand for automobiles and the semiconductor shortage,” said Chief Executive He Xiaopeng. “Our strong momentum in the quarter was propelled by our industry-leading full-stack autonomous driving technology, solid differentiated product strategy and our vision to lead Smart EV development and transformation.”
For the second quarter, the company expects revenue to be between RMB3.4 billion and RMB3.5 billion, above the current FactSet average estimate of RMB3.30 billion, and sees deliveries of 15,500 to 16,000.
XPeng’s stock wasn’t the only EV maker’s stock taking a dive Thursday. Among its China-based peers, shares of Nio Inc. /zigman2/quotes/204905836/composite NIO -0.95% slid 8.1% toward a six-month low and Li Auto Inc. /zigman2/quotes/219811686/composite LI -2.49% dropped 5.0% toward a seven-month low. Meanwhile, EV leader Tesla Inc.’s stock /zigman2/quotes/203558040/composite TSLA +1.09% slumped 4.6%, also toward a six-month low.
XPeng’s stock has tumbled 46.6% year to date, while the iShares MSCI China exchange-traded /zigman2/quotes/206267952/composite MCHI -0.14% fund has slipped 5.6% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.31% has gained 9.0%.