Chinese EV startup XPeng Motors has reported revenue of 5.1 billion yuan (US$690 million), a 25.5-percent increase on the previous quarter, but a 32-percent drop from the same period last year.
The company faced a net loss of 2.8 billion yuan, with losses expanding both YoY and QoQ. Cash reserves decreased by nearly 400 million yuan to 33.7 billion yuan. Gross profit margin slipped from 1.7 percent in Q1 to minus 3.9 percent, a notable contrast to last year’s 10.9 percent. Automotive gross profit margin went from minus 2.5 percent in Q1 to minus 8.6 percent.
CEO HE Xiaopeng highlighted the new G6. Though only 3,900 have been sold, He expects over 15,000 monthly deliveries by Q4.
XPeng plans to cut costs by 35 percent by the end of next year and expressed interest in introducing an autonomous vehicle in the 150,000-yuan price range.
