XPeng Earnings Due As China EV Stocks Enter The ‘Knockout Round’

XPeng (XPEV) prepares to report earnings for the fourth quarter early Tuesday as the China EV price war intensifies. XPeng stock gained Monday and Li Auto (LI) sank.


Last month, XPeng announced a hiring and spending spree to survive what it describes as a “bloody sea” of EV competition. It also announced plans for about 30 new or revised models within three years.

Over the weekend, the EV startup said it will launch a cheaper brand for global markets.

XPeng Earnings

Estimates: Analysts expect the China EV startup to lose 41 cents per American depositary share, slightly wider than a 40-cent loss a year ago. Revenue is seen rebounding 135% to $1.757 billion, according to FactSet.

Results: Check back Tuesday before the open.

Outlook: Xpeng is expected to offer delivery and revenue guidance. For 2024, Wall Street sees revenue swelling 84% to RMB 58.060 billion ($8.07 billion).

XPeng Stock

Shares of the Chinese EV maker pared gains to 2.6% in Monday afternoon trade. Ahead of earnings, XPeng stock has retaken a falling 50-day moving average. It remains far below the 200-day line.

Li Auto stock tumbled nearly 12% on the stock market today. Nio (NIO) also fell, while Tesla (TSLA) and Warren Buffett-backed BYD (BYDDF) gained ground.

All the China EV stocks and Tesla remain below their 200-day averages. Their 50-day lines lag below their 200-day lines, reflecting short-term weakness as well.

XPeng Expands Amid Price War

Xpeng has already reported Q4 deliveries of 60,158 electric vehicles. That was up both year over year and quarter over quarter.

Amid the Chinese New Year and factory upgrades, its February sales slid 45% vs. January.

This year, the China EV price war has intensified on both the high and low ends of the market.

That makes Xpeng’s expansion plans a stark contrast to rivals, which are racing to slash costs.

“Many business partners are drawing back and afraid to invest,” XPeng CEO He Xiaopeng wrote to employees last month, Reuters reported. “I think this is an opportunity for our development.” He described 2024 as the first year of the “knockout round” for Chinese auto brands.

Pressures continue to mount.

On Monday, various reports said Li Auto is looking to cut prices of its first purely battery electric vehicle, the Mega, to stimulate sales.

Nio plans a new mass-market brand, which is set to launch in early May.

Tesla began the China price war in late 2022. Archrival BYD is spearheading price cuts this year.

Earlier, Volkswagen (VWAGY) partnered with XPeng to develop electric vehicles in China.


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