XPeng Forecasts Strong Q4 Revenue

(Reuters) – Chinese electric vehicle maker XPeng (NYSE:XPEV) forecasts fourth quarter revenue above Wall Street estimates, driven by a refreshed product line-up and stronger domestic demand.

U.S.-listed shares rose 5.1% in premarket trading.

XPeng enjoys steady demand for its MONA M03 mid-sized sedan, delivering over 10,000 units for the second consecutive month in October. This model competes with BYD's Seagull and Dolphin, as well as the higher-priced Tesla Model 3, aiming to capture market share from competitors like BYD, Nio (NYSE:NIO), and Tesla.

After recent declines, China's passenger vehicle sales saw an uptick for the second straight month in October.

XPeng's expected fourth quarter revenue ranges from 15.3 billion to 16.2 billion yuan, surpassing analysts' average estimate of 14.77 billion yuan according to data compiled by LSEG.

Earlier this month, XPeng launched its P7+ executive sedan, its first vehicle incorporating large AI models trained on vast data. The P7+ garnered over 31,000 non-refundable orders within three hours post-launch, signalling the start of XPeng's product revamp efforts.

For Q4, XPeng anticipates delivering between 87,000 and 91,000 vehicles, representing a year-on-year increase of 44.6% to 51.3%. In Q3, they delivered 46,533 vehicles, marking a 16.3% increase from the previous year.

The revenue for Q3, ending September 30, was 10.10 billion yuan ($1.39 billion), beating estimates of 9.77 billion yuan. The company reported a loss of 1.90 yuan per ADR, while analysts had anticipated a loss of 1.71 yuan per ADR.

($1 = 7.2434 Chinese yuan renminbi)