XPeng (NYSE:XPEV) reported better-than-expected loss per share and gross margin for the fiscal fourth quarter, sending its shares climbing more than 2% in premarket trading.
The Chinese electric vehicle (EV) maker reported net losses narrowing to 1.57 billion yuan ($221.2 million), or 1.51 yuan per American depositary share (ADS), compared to 2.68 billion yuan, or 2.74 yuan per ADS, in the same quarter the previous year.
When adjusting for one-time items, the per-ADS losses were 1.98 yuan, significantly better than the expected consensus expectations of a 2.97 yuan loss.
The company's revenue reached 13.05 billion yuan, slightly below the anticipated 13.28 billion yuan.
However, the gross margin rose to 6.2%, exceeding the expected 3.67%. The operating loss was also lower than anticipated at 2.05 billion yuan, compared to the expected loss of 3.09 billion yuan.
For the first quarter, XPeng forecasts revenue to be between 5.8 billion yuan and 6.2 billion yuan, significantly below the expected the consensus projection of 10.69 billion yuan
The carmaker expects to deliver between 21,000 and 22,500 vehicles, also notably lower than the estimated 54,268 units.
“We will continue to lead the innovation of autonomous driving technology, making it affordable and accessible to a much broader customer base,” CEO Xiaopeng He said. “We will also make market entry into more international markets.”
“Our plans on cost reduction through technology and engineering as well as operational improvement have begun to bear fruit,” he added.