XPeng stock dives after wider-than-expected loss, and weighs on Nio, Tesla shares

By Tomi Kilgore

Nio's stock tumbles more than 10% in sympathy of XPeng's disappointing results, while Tesla shares shed nearly 2%

The U.S.-listed shares of XPeng Inc. tumbled Wednesday, after the China-based electric vehicle maker reported first-quarter results that missed expectations and provided a downbeat revenue outlook, as deliveries dropped by nearly 50%.

The disappointing results appeared to weigh on the stocks of rival EV makers, including Nio Inc. and Tesla Inc.

XPeng reported net losses for the quarter to March 31 that widened to RMB2.34 billion ($339.5 million), or RMB2.71 per American depositary share (ADS), from RMB1.70 billion, or RMB2.00 per ADS, in the same period a year ago.

Excluding nonrecurring items, the adjusted per-ADS loss of RMB2.57 was wider than the FactSet loss consensus of RMB1.99, as gross margin contracted to 1.7% from 12.2%.

XPeng's stock (XPEV) dropped 10.4% in afternoon trading, putting it on track to close at the lowest price since March 15. Trading volume of 19.5 million was nearly double the full-day average of about 10.8 million shares.

Revenue declined 45.9% to RMB4.03 billion ($587.3 million), well below the FactSet consensus of RMB4.99 billion.

Total deliveries of 18,230 vehicles were down 47.3% from 34,561 a year ago, and were down 17.9% from 22,204 in the fourth quarter.

For the second quarter, the company expects revenue of between RMB4.5 billion and RMB4.7 billion, well below the current FactSet consensus of RMB6.79 billion, and expects deliveries of between 21,000 and 22,000 vehicles.

In sympathy, shares of Shanghai-based Nio (NIO) sank 10.9% toward a three-week low. The stock had slipped 0.5% on Tuesday, after running up 12.4% the previous two sessions. The company is expected to report first-quarter results on or about June 9.

Shares of Texas-based Tesla (TSLA), which generated 21% of its first-quarter revenue from China, shed 1.9%. The stock had 1.6% on Tuesday, to snap a five-day win streak in which it had soared 13.5%.

Meanwhile, Beijing-based Li Auto Inc.'s stock (LI) fell rose 1.7%, reversing an earlier intraday loss of as much as 1.9%. On Tuesday, that stock had shed 2.4%.

Year to date, XPeng shares have sunk 17.9% and Nio's stock has taken a 20.0% dive, while Tesla's stock has run up 48.0% and Li Auto's stock has rallied 43.2%. In comparison, the iShares MSCI China exchange-traded fund (MCHI) has declined 5.7% and the S&P 500 index has gained 7.1%.

-Tomi Kilgore

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05-24-23 1336ET

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