XPeng Reports Sharp Decline in Revenues and Increased Losses for Q1 2023.
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XPeng Reports Sharp Decline in Revenues and Increased Losses for Q1 2023.

Total revenues of XPeng for the first quarter of 2023 amounted to US$0.59 billion, marking a substantial decrease of 45.9% compared to Q1 2022.

XPeng disclosed its unaudited financial results for the first quarter ended March 31, 2023. The report revealed a significant decline in revenues and an increase in losses compared to the same period in 2022. These figures shed light on the challenges faced by the company in a highly competitive market and underscore the impact of changes in government policies.

Total revenues of XPeng for the first quarter of 2023 amounted to RMB4.03 billion (US$0.59 billion), marking a substantial decrease of 45.9% compared to RMB7.45 billion for the corresponding period in 2022. Sequentially, revenues also decreased by 21.5% from RMB5.14 billion in the fourth quarter of 2022. This decline was primarily attributed to lower vehicle deliveries and the discontinuation of new energy vehicle subsidies, which affected XPeng’s overall sales performance.

Specifically, revenues from vehicle sales for Q1 2023 were RMB3.51 billion (US$0.51 billion), witnessing a notable decline of 49.8% compared to RMB7.00 billion in the same period of the previous year. Sequentially, vehicle sales revenues decreased by 24.6% from RMB4.66 billion in Q4 2022. The decrease in vehicle sales revenues can be attributed to reduced deliveries and the absence of new energy vehicle subsidies.

On the other hand, revenues from services and others saw an increase, reaching RMB0.52 billion (US$0.08 billion) for Q1 2023. This represented a rise of 13.9% compared to the same period in 2022 and an 8.4% increase compared to the previous quarter. The growth in this segment was mainly driven by higher sales in parts, supercharging services, and other related services, which aligned with the overall increase in accumulated vehicle sales.

The cost of sales for the first quarter of 2023 amounted to RMB3.97 billion (US$0.58 billion), reflecting a decrease of 39.4% compared to RMB6.54 billion for the same period in 2022. Sequentially, the cost of sales decreased by 15.5% from RMB4.70 billion in Q4 2022. The year-over-year and quarter-over-quarter decreases were in line with the reduced vehicle deliveries experienced during the period.

The gross margin for Q1 2023 was reported at 1.7%, a significant decrease compared to 12.2% in Q1 2022 and 8.7% in Q4 2022. The vehicle margin, specifically, was negative 2.5% for the first quarter of 2023, in stark contrast to 10.4% in the same period in 2022 and 5.7% in the previous quarter. These declines were primarily attributed to increased sales promotions and the expiration of new energy vehicle subsidies.

XPeng’s research and development (R&D) expenses for Q1 2023 amounted to RMB1.30 billion (US$0.19 billion), showing an increase of 6.1% compared to the same period in 2022 and a 5.3% increase compared to Q4 2022. The year-over-year and quarter-over-quarter increases in R&D expenses were primarily driven by higher costs associated with the development of new vehicle models, which aim to support the company’s future growth plans.

The company’s loss from operations for Q1 2023 was reported at RMB2.59 billion (US$0.38 billion), a notable increase compared to RMB1.92 billion for the same period in 2022 and RMB2.52 billion in the previous quarter. The net loss for Q1 2023 stood at RMB2.34 billion (US$0.34 billion), compared to RMB1.70 billion in the same period in 2022 and RMB2.36 billion in Q4 2022. These increased losses underscore the financial challenges faced by XPeng during the first quarter of 2023.

XPeng delivered a total of 18,230 EVs in the first quarter of 2023, representing a decrease of 17.9% from 22,204 for the fourth quarter of 2022. The company continued expansion of its physical sales network with a total of 425 stores, covering 145 cities as of March 31, 2023.

Also Read: BMW introduces the all-new 2024 fully electric BMW i5.

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