Xpeng Earnings: XPEV Stock On Deck As China Lockdowns Threaten EV Boom

Xpeng (XPEV) prepares to report Monday for the first quarter, with Nio (NIO) on deck, after Li Auto (Li) gave weak revenue and delivery guidance.

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All three Chinese EV startups aspire to shake Tesla‘s (TSLA) dominance in the Chinese market for luxury electric cars. They are also challenging homegrown EV and battery giant BYD (BYDDF) in the world’s largest car market.

China’s stringent lockdown measures against Covid-19 have led to factory and production shutdowns. Production, delivery and financial outlook will be key.

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Xpeng Earnings

Estimates: Analysts polled by FactSet expect Xpeng to widen losses to 28 cents per ADR vs. a loss of 8 cents a year ago. Revenue is seen jumping 139% year over year to $1.092 billion. But sales growth is seen slowing from a 303% gain the prior quarter.

Results: Check back early Monday.

XPEV Stock

Shares of Xpeng fell 1.2% to 23.33 on the stock market today. Xpeng stock remains below a falling 50-day average and its relative strength line shows serious lag.

Nio and Xpeng sank earlier in May after joining Li Auto on the provisional list of Chinese companies poised for a U.S. delisting.

Xpeng EV Sales Slowed In April

China’s Xpeng has previously disclosed that it delivered 34,561 electric vehicles, or EVs, during the first quarter, above its forecast range of up 159% year over year. Xpeng outsold its startup peers in Q1.

It went on to outperform Nio and Li Auto in April as well, though sales were down sharply vs. March for all three EV stocks as Covid lockdowns hurt the EV supply chain.

In early May, Li Auto gave lackluster Q2 delivery guidance while its revenue outlook came in below views.

Investors will be eager to hear the latest on supply disruptions from Xpeng. They will also want to hear more about new EVs and plans for international expansion.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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