On Wednesday, Bernstein SocGen Group maintained its Market Perform rating for XPeng (NYSE:XPEV) with a consistent price target of $12.00 for the shares.
The electric vehicle manufacturer reported a significant year-over-year revenue increase for the first quarter, attributed to both a rise in vehicle deliveries and an increase in average selling price (ASP).
XPeng's Q1 revenue reached approximately 6.5 billion RMB, marking a 62.3% increase compared to the same period last year.
This growth was spurred by the delivery of 21,800 units, a 19.7% increase year-over-year, and a substantial increase in ASP, which rose by 31.8% year-over-year to 254,000 RMB.
The company's gross margin for the quarter significantly improved to 12.9%, a notable rise from the 1.7% recorded in the first quarter of the previous year and the 6.2% in the fourth quarter of 2023.
Vehicle margin also saw an improvement, reaching 5.5% compared to the negative 2.5% in the same quarter of the previous year and 4.1% in the preceding quarter.
XPeng's adjusted vehicle margin for the quarter would have been 8.7%, excluding the impairments related to the P5 model, which had a negative impact of approximately 3.2 percentage points or around 180 million RMB.
The launch and mass delivery of the X9 model since January were key factors contributing to the lifted ASP and vehicle margin during the quarter.
InvestingPro Insights
As XPeng (NYSE:XPEV) continues to make strides in the electric vehicle market, key metrics from InvestingPro offer additional insights into the company's financial health and stock performance. XPeng holds a market capitalization of $8.27 billion, reflecting its standing in the industry. Despite a challenging financial landscape, the company has reported a robust revenue growth of 41.64% over the last twelve months as of Q1 2024, outpacing many competitors and showcasing its sales momentum.
InvestingPro Tips highlight that XPeng has more cash than debt on its balance sheet and liquid assets that exceed short-term obligations, providing the company with a stable financial footing. Additionally, analysts anticipate sales growth in the current year, which, combined with a significant return over the last week of 9.76%, could signal investor confidence in the company's growth trajectory. However, it is important to note that analysts do not expect XPeng to be profitable this year, and the stock has experienced high price volatility, which investors should consider when evaluating the stock.
For those looking to delve deeper into XPeng's performance and future prospects, InvestingPro offers additional insights with more InvestingPro Tips available at https://www.investing.com/pro/XPEV. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a comprehensive analysis that can guide investment decisions.
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