XPeng Shares Dip Despite Improved Q3 Earnings and Margin Expansion
XPeng's third-quarter earnings revealed a narrower-than-expected loss, driven by a 149.3% surge in vehicle deliveries and a record gross margin of 20.1%. Revenue climbed 101.8% year-over-year to RMB 20.38 billion ($2.86 billion), yet shares fell 3.6% pre-market as Q4 revenue guidance disappointed investors.
The Chinese EV maker's vehicle margins expanded to 13.1%, reflecting aggressive cost-cutting measures. Despite these operational improvements, the market reaction underscores heightened sensitivity to forward-looking projections in the competitive electric vehicle sector.