Shares of Chinese Tesla rival Xpeng climb as EV deliveries return to growth

0

A XPeng Inc. G6 electric sport utility vehicle (SUV). The company is hoping the release of the new car will boost sales which plunged in the first quarter.

Qilai Shen | Bloomberg | Getty Images

Shares of Xpeng were higher Monday in the U.S. after the Chinese electric vehicle maker reported a quarterly return to growth for car deliveries, following more than a year of declines.

Xpeng on Saturday said it delivered 23,205 cars in the second quarter of 2023, logging a 27% quarter-on-quarter rise. This surpassed the company’s own delivery forecast of between 21,000 and 22,000 units. That was still lower than the 34,422 cars delivered in the second quarter of last year.

U.S.-listed shares of Xpeng added about 0.3% in morning trading.

Deliveries have been declining each quarter since the first quarter of 2022 for Xpeng, as it struggled with a tough macroeconomic environment in China and heightened competition from domestic rivals and from Tesla, which has been cutting prices in China to spur demand. That has also hurt Xpeng’s competitiveness.

Tesla’s strategy seems to be working with the company reporting global vehicles deliveries of 466,140 in the second quarter, beating analysts expectations.

Xpeng said deliveries in June alone totalled 8,620 cars, marking a 15% increase over May and the highest monthly delivery figure this year.

The Guangzhou, China-headquartered company said deliveries of its flagship P7 sedan rose 17% in June from May, but did not give a specific unit figure.

Xpeng’s latest car — the G6 Ultra Smart Coupe SUV — was launched at the end of the second quarter, with deliveries beginning this month. Xpeng is hoping this will boost sales in the coming quarters.

Xpeng’s losses continue to widen and competition is getting fiercer. Last month, Chinese EV start-up Nio made big price cuts to its cars.

Xpeng has been reorganizing its management structure and overhauling the company over the past few months in the hope of unlocking growth.

Some of the company’s rivals have fared better. Li Auto delivered 32,575 vehicles in June while its second quarter figures totaled 86,533. Nio meanwhile delivered 10,707 vehicles in June and 23,520 cars in the second quarter, not far ahead of Xpeng.

Meanwhile, Warren Buffett-backed automaker BYD delivered 253,046 new energy vehicles — which includes battery and plug-in hybrids — in June alone, representing a 96% year-on-year rise.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest World News Click Here 

Read original article here

Denial of responsibility! Rapidtelecast.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave a comment