Xpeng Earnings: First Billion-Dollar Quarter Seen For EV Startup Rival To Tesla, Nio. But Delisting Fears Hit Xpeng Stock

Xpeng (XPEV) is gearing to report Monday for the fourth quarter after hiking EV prices due to rising material costs. Also on Monday, Nio (Nio) is supposed to deliver its hotly anticipated ET7 electric car to customers in China. Xpeng stock and Nio tumbled amid delisting fears.

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The ET7 is seen as a direct rival to the Tesla (TSLA) Model S and the Xpeng P7 in China.

Xpeng Earnings: Billion-Dollar Quarter?

Estimates: Wall Street expects Xpeng to lose 33 cents per ADR vs. a loss of seven cents a year ago. Revenue is seen vaulting 180% year over year to $1.223 billion, according to FactSet. That would be down slightly from a 199% sales gain in Q3. But it would mark Xpeng’s first billion-dollar quarter in sales, a milestone for the Chinese EV startup.

Results: Check back early Monday.

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Xpeng has already revealed that it sold 41,751 EVs in Q4 2021, easily beating its own target. That was up 222% year over year and also up sharply from Q3, despite the auto chip shortage.

So far this year, Chinese EV startups Xpeng (XPEV) and Li Auto (LI) outsold rival Nio in January and February. Chinese EV companies will report March and Q1 sales in days ahead.

Delisting Fears Hit Xpeng Stock

Shares of Xpeng tanked 7.6% and Nio dived 9.4% on the stock market today. Xpeng stock tumbled across the past year and remains well below the 50-day moving average with no buy point in sight. Li Auto and China EV giant BYD (BYDDF), which may also report next week, gave up about 5% each. Tesla pared losses to 0.3% Friday as it works on a 1208.10 buy point.

In 2021, EV sales boomed in China, making it once again the world’s largest market for electric cars.

Though China EV sales remain strong so far in 2022, other fears are hitting Xpeng and its peers. They slid Friday after microblog service Weibo landed on the list of Chinese companies at risk of being delisted on U.S. stock exchanges.

There are other concerns.

Xpeng, along with Tesla and others, hiked EV prices in March due to rising materials prices. Meanwhile, global chip shortages continue and now an omicron subvariant is surging in parts of China, including key manufacturing hubs.

Then there’s the ET7, Nio’s first electric sedan and a high-tech, long-range EV, which arrives Monday. It will soon be followed by the smaller ET5. Those new Nio EVs will challenge not only Tesla’s Model S and Model 3 in China, but also Xpeng’s P7 and P5.

Not least, Volkswagen (VWAGY) said in March that it will make China a bigger priority as the Ukraine war slams the auto supply chain in Europe.

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