Will XPeng do better in 2025 or is this the start of the brand’s decline?
XPeng Inc, a leading Chinese smart electric vehicle (EV) company, announced its unaudited financial results for Q3 2024, reporting a 16.3 percent increase in vehicle deliveries to 46,533 units, compared to 40,008 units in Q3 2023. The company’s sales network grew to 639 stores across 206 cities by September 30, 2024.
Additionally, XPeng’s self-operated charging network expanded to 1,557 stations, including 654 ultra-fast XPeng S4 stations. Total revenue for the third quarter reached RMB 10.10 billion (US$1.44 billion), up 18.4 percent from Q3 2023 and 24.5 percent from Q2 2024. Revenue from vehicle sales rose 12.1 percent year-over-year to RMB 8.80 billion (USD1.25 billion or about RM4.45 billion), and increased by 29.0 percent from Q2 2024.
Moreover, XPeng’s gross margin for Q3 2024 was 15.3 percent, a significant improvement from a negative 2.7 percent in Q3 2023 and 14.0 percent in Q2 2024. Vehicle margin also improved to 8.6 percent, compared to a negative 6.1 percent in Q3 2023 and 6.4 percent in Q2 2024.
The company posted a net loss of RMB 1.81 billion (USD0.26 billion) for the quarter, an improvement from RMB 3.89 billion in Q3 2023 and RMB 1.28 billion in Q2 2024. Excluding certain expenses, the non-GAAP net loss was RMB 1.53 billion (USD0.22 billion), down from RMB 2.79 billion in Q3 2023 and RMB 1.22 billion in Q2 2024.
On top of that, net loss per American Depositary Share (ADS) was RMB 1.91 (USD0.27), and net loss per ordinary share was RMB 0.95 (USD0.14). Non-GAAP net loss per ADS was RMB 1.62 (USD0.23), and per ordinary share was RMB 0.81 (USD0.12).
As of September 30, 2024, XPeng’s cash and equivalents, along with short-term investments, totaled RMB 35.75 billion (USD5.09 billion), a slight decrease from RMB 37.33 billion at the end of Q2 2024. This includes restricted and non-restricted deposits.
