Xpeng Inc (XPEV), a Chinese manufacturer of electric vehicles, released its annual report for the second quarter ended June 30. The company once again impressed investors with its growth.
China’s technology industry is undergoing increased scrutiny and regulation, as well as investor concerns concerning the global chip shortage in the automotive industry, which have resulted in XPeng’s shares rising dramatically since the end of last year.
The shares of Xpeng Inc (XPEV) are down 4.6% since early 2021, but up nearly 30% in the last quarter. According to company executives, XPeng’s electric vehicle shipments in the first half of 2021 exceeded total shipments for the full year of 2020, reaching 30,738, up 459% from last year.
In the second quarter, deliveries reached 17 398 units, 30.4% higher than 13 340 units in the first quarter and 439% higher than a year ago. 11,522 of these are XPeng P7 sedans, while the rest are XPeng G3 SUVs. XPEV stated that 97% of P7s delivered in the second quarter of 2021 could work with the XPILOT 2.5 or XPILOT 3.0 autopilot system.
For the second quarter of 2021, XPeng’s revenue totaled $582.5 million (RMB 3761.3 million), up 27.5% over the first quarter and 536.7% over the second quarter of 2020. Of total revenues, $ 27.4 million came from services, parts, and accessories.
Like many other automakers in the industry, Xpeng Inc (XPEV) plans to create a new revenue stream from subscription sales for its autopilot system.
Xpeng Inc (XPEV) remains unprofitable and losses were up 40% from the previous quarter due to rising research and development costs. This shouldn’t confuse investors, since the company has more than $5 billion in funds on its balance sheet, allowing it to keep ramping up production as it seeks profitability.
According to XPeng’s high outlook for the third quarter of 2021, the company anticipates stable demand and a rapid increase in production. Vehicle deliveries are forecast to be 21,500 to 22,500, and revenue is forecast to be 4.8 to 5.0 billion yuan, which represents an increase of 141.2% to 151.3% over the same period in 2015.