Dow Jones Newswires: XPeng shares slide after disappointing results, sales guidance

by | Aug 24, 2022 | Stock Market

Shares of XPeng Inc. fell sharply Wednesday morning in Hong Kong, after the Chinese electric-car maker posted a wider-than-expected loss and provided a conservative third-quarter sales forecast. XPeng slid 12% to 73.20 Hong Kong dollars (US$9.33), taking its year-to-date losses to 61%. Its American depositary shares had also slumped 11% overnight.

Peers Li Auto Inc.
LI,
-4.83%
and NIO Inc.
NIO,
-3.48%
were down 5.9% and 3.7% in Hong Kong, respectively, while the city’s benchmark Hang Seng Index
HSI,
-1.20%
was 1% lower. XPeng on Tuesday posted net loss of 2.70 billion yuan (US$395.0 million) for the three months ended June, compared with loss of CNY1.19 billion in the year-earlier period. That was worse than the consensus estimate for CNY1.89 billion loss in a FactSet poll of analysts. Revenue for the period also came in slightly below analysts’ forecasts at CNY7.44 billion. XPeng guided for third-quarter sales volume of 29,000-31,000 vehicles, which Citi analysts said was “very conservative.” The Citi analysts lowered their 2022-2024 sales forecasts for XPeng, citing “multiple uncertainties, including the pandemic, consumption downgrade, and supply chain challenges” in a note. Citi slashed its target price on XPeng’s H-shares to HK$107.17 from HK$198.38 and on its ADSs to $27.87 from $51.59. But the bank retained a buy rating on XPeng, saying its optimistic mid- to long-term view is unchanged. Write to Clarence Leong at clarence.leong@wsj.com

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