Shares of XPeng (NYSE:XPEV) are up by more than 30% after the Chinese electric vehicle (EV) company reported its third-quarter earnings. Revenue tallied in at $960.9 million, up 19.3% year-over-year (YOY), but missing the analyst estimate for $1.02 billion. The company also remains unprofitable, reporting a net loss of $336.16 million versus the estimate for a loss of $295.19 million.
Revenue was driven by the delivery of 29,570 EVs during the quarter. That’s up 15% YOY but down 14% from Q2. Revenue from vehicle sales totaled $880 million, up 14.3% YOY but down 10.1% from Q2. Finally, gross margin was 13.5%, down from 14.4% YOY.
For November, President Brian Gu cautioned that deliveries would likely be below 6,000 EVs. However, December should be a strong month, with Gu estimating over 10,000 deliveries.
With a miss on revenue and net loss and declining margins, investors are wondering why XPEV stock is up so much. That may be because some investors believe the bottom is in, and any other headwinds are fully priced in. Automobility CEO Bill Russo explained the gains are “probably because the markets have punished them [Xpeng] and that this somehow puts the bad news in the rear view mirror and represents the bottom.”
5 Investors Betting Big on XPEV Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 249 13F filers reported owning XPEV, a decline of 40 filers from the previous quarter. In addition, the institutional put/call ratio lies at 0.86, down from 1.02 during Q2. That’s equivalent to 8.15 million puts and 9.53 million calls, reflecting a bullish options stance. With that in mind, let’s take a look at the investors betting big on XPEV. Please note this list only includes investors who filed a Q3 position update. For example, CEO He Xiaopeng owns 348.71 million shares, but that figure is only accurate as of Q4 2021.
- BlackRock (NYSE:BLK): 20.12 million shares. BlackRock sold 1.2 million shares during Q3.
- Vanguard: 19.7 million shares. Vanguard purchased 356,174 shares during Q3.
- Fifthdelta: 15.93 million shares. Fifthdelta purchased 14.11 million shares during Q3.
- FMR: 13.22 million shares. FMR sold 8.19 million shares during Q3.
- Primecap Management: 11.02 million shares. Primecap purchased 2.48 million shares during Q3.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.