Investing.com -- Xpeng (NYSE:XPEV) reported a smaller-than-expected loss for the third quarter, driven by solid sales of popular new models, and issued upbeat guidance for the fourth quarter.
For the three months ending September, Xpeng’s non-GAAP net loss attributable to shareholders narrowed to 1.5 billion yuan, outperforming analysts’ projection of a 1.6 billion yuan deficit.
Revenue surged 18.4% year-over-year to 10.1 billion yuan, exceeding the anticipated 9.9 billion yuan.
The company posted a gross margin of 15.3%, its highest quarterly figure since its US listing in 2020.
Brian Gu, Xpeng’s vice-chairman and co-president, attributed the improvement to “technology-driven cost reductions and significant quarter-over-quarter volume growth,” marking the fifth consecutive quarter of margin gains.
US-listed shares in Xpeng rose more than 4% in premarket trading Tuesday.
Xpeng delivered 46,533 vehicles during the quarter, also surpassing analyst expectations.
For the fourth quarter, the company projects sales between 87,000 and 91,000 units—well above the consensus estimate of 73,960—and revenue of 15.3 billion to 16.2 billion yuan, higher than the forecasted 14.7 billion yuan.
The automaker is poised for a strong finish to the year, achieving a record monthly delivery of approximately 24,000 vehicles in October. However, its annual performance remains below target, with 122,478 deliveries in the first 10 months, falling short of its ambitious goal of 280,000 vehicles for the year.
Xpeng's MONA M03 mid-sized sedan continues to see strong demand, with over 10,000 units delivered in October for the second consecutive month.
Positioned to compete with BYD (SZ:002594)'s Seagull and Dolphin models as well as the higher-priced Tesla (NASDAQ:TSLA) Model 3, the MONA M03 is part of Xpeng's strategy to capture market share from rivals.
This month, Xpeng introduced the Kunpeng platform, a range-extended EV system designed to achieve up to 1,400 kilometers of driving range. The platform uses a combination of an electric battery and a small gasoline engine to recharge the battery, catering to the growing demand for range-extended EVs, which are gaining traction for their affordability and extended range compared to pure battery EVs.
Mass production of vehicles using this platform is expected to begin in late 2025, according to reports from Chinese media.