Xpeng increases turnover and loss
In the second quarter, the company reported a loss of 2.8 billion yuan (352 million euros at the exchange rate at the time). At the same time, turnover rose to around 8.5 billion yuan (approx. 1.1 billion euros), compared to 5.1 billion yuan in Q2.
The company has thus achieved the desired turnaround in sales – sales from the second quarter were still almost 32 per cent below those from Q2 2022. In Q3, however, sales increased by 25 per cent from 2022 to 2023. Incidentally, 7.84 billion yuan of the total 8.5 billion yuan is revenue from vehicle sales.
At the same time, however, Xpeng is moving further away from profitability. Not only does the 3.9 billion yuan mean a larger loss compared to Q2, but the loss in Q3 2022 was also lower at 2.8 billion yuan. The vehicle margin was -6.1 per cent in Q3 2023, while it was already positive in Q3 2022.
Xpeng delivered 40,008 electric cars from July to September – 23,205 deliveries were reported between April and June. In the first ten months of the year, Xpeng delivered a total of 101,445 electric cars to customers – 20,002 of which were delivered in October alone. This result is expected to be maintained in November and December: The company expects to deliver around 59,500 to 63,500 vehicles in the final quarter.
“In 2023, Xpeng was the first mover in reaching the inflection point for both the development and mass adoption of ADAS technologies. I believe that over the next five years, ADAS technologies will experience increasing and massive acceptance by consumers,” says He Xiaopeng, Chairman and CEO of Xpeng. “In the third quarter of 2023, our business stepped into the initial phase of a virtuous cycle. I am confident that the transformational adjustments we began to implement early this year will yield more positive results in 2024 and beyond, accelerating our virtuous cycle and rapid growth by the fourth quarter of 2024.”