By Michael Elkins
Shares of XPeng Inc. (NYSE:XPEV) are up 10.35% in pre-market trading on Wednesday following the release of the company's 3Q earnings report. The company reported an EPS loss of (0.36) per share, missing the consensus EPS estimate by 0.08. Total revenues were reported at RMB 6.82 billion ($0.96B) for the third quarter, representing an increase of 19.3% from the same period of 2021, and a decrease of 8.2% from the second quarter of 2022. Total deliveries for the quarter were 29,570, representing an increase of 15% from 25,666 in the corresponding period of 2021.
XPeng has been undergoing an internal restructuring and a strategy rethink. Dr. Hongdi Brian Gu, Honorary Vice Chairman and President of XPeng said that XPeng founder He Xiaopeng will be taking a more direct leadership role. He also said XPeng will reduce spending in non-core areas.
"Our management team has recently conducted an in-depth review of our growth strategy, products and operation. We have already carried out organization restructuring and changed some of our strategies. I am confident that our industry-leading smart and electrification technologies will allow us to build competitive products appealing to a broad customer base," said Mr. He Xiaopeng, Chairman and CEO of XPeng. "I also would like to thank our shareholders for their valuable suggestions to us."
"We will implement prudent cost control initiatives and improve operational efficiency," said Dr. Gu. "As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price."
Shares of the Guangzhou-based automaker rose over 10% in early premarket trading, despite the top line miss, as more than 2M shares changed hands.
The lifting of some highly restrictive COVID-19 measures in its home city of Guangzhou after protests appeared to aid the gain. Major Chinese indices rose sharply on Wednesday as signs of regulatory rollbacks raised prospects of less aggressive anti-pandemic policies moving forward.