XPeng Inc. (XPEV) is set to report third-quarter earnings on Monday, November 16, after posting record electric vehicle deliveries but continuing to struggle with profitability. Wall Street expects a loss of $0.11 per share, compared with a loss of $0.06 a year earlier. The key question is whether the Chinese EV maker’s growing sales can translate into stronger margins.
The company will release its results before the U.S. market opens.
On Friday, XPEV stock fell 0.95% to close at $9.37. Year-to-date, the stock has lost roughly 54% of its value.
XPeng delivered 118,390 vehicles in the third quarter, up 15% from the previous quarter and within management’s forecast of 115,000 to 121,000 units.
The momentum continued in October, when deliveries reached a record 50,237 vehicles, up 20% year-over-year. Overseas deliveries also jumped 166% to 13,326 vehicles.
Yet higher sales haven’t solved XPeng’s profitability problem. In the second quarter, revenue rose 51.5% quarter-over-quarter to RMB 19.74 billion, while overall gross margin improved to 20.7%. However, vehicle margins fell to 12.1% from 14.3% a year earlier. For the third quarter, XPeng forecast revenue of RMB 21.7 billion to RMB 2...