XPeng (XPEV) releases record high October sales results

Chinese electric vehicle maker, XPeng (NYSE: XPEV) released their October 2023 vehicle delivery report on Wednesday, announcing the company’s Smart EV monthly deliveries reached a record high of 20,002 units, representing a 31% increase over the prior month and a 292% increase year-over-year.

This month, XPENG continues to demonstrate its impressive growth, marking the ninth consecutive month of strong results. Additionally, the production output of the XPENG G6 has notably increased, leading to a remarkable single-month delivery volume of 8,741 units.

This achievement solidifies the XPENG G6's position as the leading battery electric SUV in the RMB200,000-250,000 price range.

Morgan Stanley analysts initially expected XPeng to report 7-42% quarterly growth in vehicle volume, reaching 55-57k units in Q4. However, the current outlook leans towards a more positive trajectory due to a substantial order backlog.

Market expectations revolve around increased volume in the final months of 2023, with a focus on sustained orders for G6 and G9, potential gains from LFP-P7i, and a margin recovery in Q4, which will be crucial factors to monitor during the upcoming earnings report.

During the company’s annual Tech Day on October 24th, XPeng revealed its latest plans for its advanced driver assistance system (ADAS).

The company intends to extend the deployment of certain XNGP features, independent of high-definition maps, to 50 cities by the end of the year. Furthermore, they announced the introduction of a new ADAS function called AI Valet Driver, which will be accessible to specific customers by the end of 2023, with the goal of nationwide availability in 2024.

During the event, XPENG also introduced the XPENG X9, a spacious 7-seater MPV with a cutting-edge, futuristic exterior design inspired by starship aesthetics. Developed on the SEPA2.0 framework, the XPENG X9 will be exhibited at Auto Guangzhou 2023 in November as the company's flagship model.

Shares of XPEV are up 7.25% in mid-day trading on Wednesday.

By Michael Elkins | [email protected]

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