Tesla's Chinese EV rival XPeng (XPEV) Gains Despite a Lower Q1 Delivery Guide

Shares of XPeng (NYSE: XPEV) are trading about 6% higher in the pre-open Tuesday despite the downgraded delivery guidance announced this morning.

XPEV said it expects to deliver around 12,500 vehicles in the first quarter, to fall short of the expected 20,000 - 25,000 Q1 deliveries from their key rival Nio (NYSE: NIO).

Given that XPeng announced it delivered 6,015 units in January and 2,223 in February (the week-long Lunar New Year holiday in mid-February), the Q1 forecast pimples deliveries of 4,250 cars in March.

The company launched a P7 sedan last year and it expects to add another sedan later this year. Furthermore, it launched its own autonomous highway driving features in a bid to gain market share from Tesla in China.

The EV company previously announced its revenue soared 43% to 2.85 billion yuan ($437 million) in the fourth quarter. However, the company guided a lower Q1, with revenues expected at 2.6 billion yuan.

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