XPeng trades lower after electric vehicle deliveries guidance disappoints

XPeng (NYSE:XPEV) traded lower on Tuesday despite reporting revenue growth of 60.2% year-over-year and 23.9% quarter-over-quarter for its quarter that ended on June 30. XPeng (XPEV) also posted a narrower loss than a year ago. The Chinese automaker’s operating loss of 1.61 billion yuan was also better than the consensus estimate for a loss of 1.91 billion yuan.

The Guangzhou-based company guided for Q3 deliveries of 41,000 to 45,000 units, which would be a big jump from the 30,207 deliveries in Q2, but had a midpoint below the consensus estimate of 44,727 units.

“We are about to enter into a strong product cycle,” stated CEO He Xiaopeng. “In the next three years, we will have a large number of new models and facelift versions in the pipeline for market launch,” he added. Xiaopeng also said XPEV’s product line-up and more efficient marketing/technological advantages, including breakthroughs in artificial intelligence, will lead to sales growth in China and the international market.

XPeng (XPEV) -6.8%, Li Auto (LI) -5.3%, ZEEKR Intelligent (ZK) -8.5%, and NIO (NIO) -5.8% all traded lower on Tuesday amid broad losses for Chinese tech stocks. Earlier in the day, the European Commission weighed in on tariffs for China-made electric vehicles. While the tariffs were lowered for some Chinese automakers, analysts noted that they are still high enough to pressure sales and profits.