Xpeng Forecasts Third-Quarter Revenue Below Analyst Estimates
Xpeng forecasts third-quarter revenue between 21.7 billion and 23.4 billion yuan, citing weak consumer demand and intensifying competition in China.
Xpeng forecast third-quarter revenue between 21.7 billion yuan ($3.23 billion) and 23.4 billion yuan, missing the average analyst estimate of 26.61 billion yuan. The company attributed the lower outlook to weak consumer demand and intensifying competition within the Chinese domestic auto market.
Financial results for the second quarter showed a net loss of 1.34 billion yuan, which significantly exceeded the estimated loss of 511.8 million yuan. Despite the financial shortfall, the manufacturer delivered 103,295 units during the period. Hongdi Brian Gu stated that operations remained resilient during the second quarter despite industry-wide cost pressures.
Operational challenges included the recall of 264,842 vehicles due to emergency door-release concerns, part of a broader industry-wide recall in China. To diversify its portfolio, Xpeng launched the MONA L03 AI SUV coupe and secured over $900 million in a record-breaking first funding round for its robotics unit.
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