XPeng (NYSE:XPEV) stock is in focus after the Chinese electric vehicle (EV) company reported its fourth-quarter and 2023 full-year earnings. During the quarter, XPeng delivered 60,158 vehicles, up by a significant 170.9% year-over-year (YOY). That helped bring total revenue to $1.84 billion, which grew by 153.9% YOY and beat the analyst estimate for $1.76 billion. Vehicle sales revenue grew by 162.3% to $1.72 billion.
Within the next month, XPeng will unveil a more affordable EV brand equipped with artificial intelligence (AI) features. CEO and Chairman Xiaopeng He revealed at an industry event that prices would range between $14,000 and $21,000, and that the company plans to launch “10 new models over the next three years,” per MarketWatch.
“We will continue to lead the innovation of autonomous driving technology, making it affordable and accessible to a much broader customer base,” said He.
XPEV Stock: XPeng Reports Q4 and 2023 Full-Year Earnings
Profitability improved as well. Net loss for the quarter tallied in at $190 million compared to $330 million a year ago. The company’s non-GAAP net loss, which includes items such as share-based compensation and fair value adjustments on derivative liabilities, was $250 million compared to $310 million a year ago.
At the same time, vehicle margins took a hit due to the ongoing EV price wars. Gross margin was 6.2% and improved from -2.7% during Q3 but fell from 8.7% YOY. Vehicle margin was 4.1% during Q4, up from -6.1% during Q3 but down from 5.7% a year ago.
For guidance, XPeng expects to produce between 21,000 and 22,500 vehicles during Q1, signaling yearly growth between 15.2% and 23.4%. It also expects revenue to grow between 43.8% and 53.7% to between $800 million and $860 million. As of Feb. 29, total yearly deliveries totaled 12,795 vehicles, meaning that March deliveries would have to be at least 8,205 vehicles in order to meet the low end of XPeng’s guidance.
Morgan Stanley analyst Tim Hsiao was satisfied with the numbers and reiterated his price target of $18 and “overweight” rating for XPEV stock. For the current quarter, Hsiao would like to see margin improvements, successful vehicle launches and increased deliveries.
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.
