Tesla Rival in China Xpeng's Q3 Net Losses Widen Despite Increased Vehicle Sales

Chinese electric vehicle XPeng reported net losses widened in the third quarter even as vehicle sales increased as higher costs offset the jump in car sales. While sales are increasing for XPeng, net losses widened in Q3 due to rising costs such as higher deliveries and inventory write-downs outweighing the benefit of more vehicle sales. XPeng is guiding for significantly higher sales and revenue in the fourth quarter but did not provide a net income/loss forecast. XPeng forecasts delivering over 59,000 vehicles in the fourth quarter, more than double the amount from a year ago, and expects revenue to increase 86-99% year-over-year to between 12.7-13.6 billion yuan.