Economy

Xpeng will deliver fewer electric cars in the first quarter

China- Well-known Chinese electric car maker Xpeng forecasted that it will soon deliver fewer cars than the rival start-up Nio within the first three months of the year.

Well, New York-listed Xpeng has made an announcement that overnight it would like to deliver almost 12,500 vehicles in the first quarter. This refers to the delivery of 4,250 cars for March on the basis of January’s 6,015 figure and in February it dropped to 2,223.

However, in mid-February, while considering the week-long Lunar New Year holiday those figures fall short of that of Nio’s.

In the last week, Nio has almost made deliveries of 20,000 to 25,000 vehicles within the first quarter. In March, this implies the deliveries of almost 7,197 cars in the march. Till now the company has made deliveries of SUVs right now and sells them at a higher price range than that of Xpeng’s cars.

In the early next year, Nio planned to make a delivery of a sedan to consumers. On the other hand, Xpeng has launched its P7 sedan in the last year that has been accounted for a growing share of deliveries versus its G3 SUV. Later in this year, Xpeng has planned to release another sedan.

Another Chinese electric car company Li Auto listed in the U.S., provides the lowest forecast of the three start-ups, at 10,500 to 11,500 deliveries within the first quarter. 

Instead of the attention on start-ups like Nio and Xpeng, even old automakers Tesla and BYD are currently selling electric cars in China on a greater scale. Alone in January, Tesla has sold more than 14,500 China-model 3s and BYD more than 7,200 of its Han model as per figures from the China Passenger Car Association which released Tuesday.

In 2020, shares of the U.S. listed electric car companies have fallen massively in the last two months, during the U.S. stock market’s volatile started to the year.

  • Xpeng’s share failed almost by 4% overnight and is down by almost 35% for the year till now.
  • Nio felled by 7.6% overnight and almost down by 25% to date
  • Li Auto’s share even fell 5% at the starting of the week and so far down by 26%
  • Even Tesla shared more than 5% in Monday’s session and so far it will be down by 20%.

Like Tesla, Nio, and other car companies trying to create self-driving technology, Xpeng started rolling out its autonomous driving software to certain premium P7 sedan consumers this year. Well, this P7 technology permits the users in automating as changing lanes and entering and exiting highways.

Almost one-fifth of 20,100 P7 sedans were delivered this February which have activated the latest self-driving software as per information from the management.

As per the report, it is found that Xpeng’s total revenue rose almost by 43% from the third quarter to 2.85 billion yuan in the 4th quarter. However, the company even expects the revenue to fall slightly by 2.6 billion in the first quarter.

However, the net losses have narrowed to 787.4 million yuan in the last three months of the year from 1.15 billion yuan in the preceding quarter.

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