XPeng, the Chinese electric-vehicle maker, is scheduled to release its second-quarter results on Friday. Analysts are anticipating a narrower net loss of CNY2.30 billion ($315.2 million) for the quarter, compared to a net loss of CNY2.70 billion in the same period last year.
According to a FactSet poll, second-quarter revenue is estimated to have declined 31% year-on-year, reaching CNY5.16 billion.
Key Points to Watch
XPeng is expected to provide its business outlook for the third quarter, alongside its second-quarter results. Investors will be keen to see any forecasts regarding vehicle delivery and revenue. In July, XPeng witnessed a 28% increase in deliveries compared to the previous month, with a total of 11,008 vehicles delivered.
The vehicle margin, an important indicator of profitability, stood at a negative 2.5% in the first quarter. This represented a significant decline from 5.7% in the previous quarter and 10.4% the previous year. The drop in margin was primarily attributed to increased sales promotions and the expiration of electric-vehicle subsidies. Investors are eager for signs of a potential recovery in margins.
Volkswagen recently announced its investment of $700 million for a 5% stake in XPeng. As part of the strategic partnership, Volkswagen and XPeng will collaborate on developing two electric vehicle models specifically for the Chinese market. Investors are anticipating any updates regarding this partnership.