XPeng stock lowers after losses widen more than expected, outlook downbeat

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XPeng Inc. xpev shares,
Shares rose 1.1% in premarket trading Friday after the China-based electric vehicle maker reported fourth-quarter losses that were wider than expected, revenue that fell short of forecasts and provided downbeat outlook, but on reassuring sales and Market share growth will resume as the company improves efficiency and continues to cut costs. Net loss widened to RMB2.68 billion ($388.5 million), or RMB2.74 per share, from RMB1.86 billion, or RMB1.51 per share, in the year-ago period. Excluding non-recurring items, an adjusted loss per American Depositary Share (ADS) of RMB2.57 was higher than the FactSet loss consensus of RMB2.15. Revenue fell 39.9% to RMB5.14 billion ($745.3 million), below the FactSet consensus of RMB5.61 billion. Deliveries fell 46.8% to 22,204 EV, above the FactSet consensus of 21,400, while gross margin shrank to 8.7% from 12.0%. For the first quarter, the company expects revenue between RMB4.0 billion and RMB4.2 billion, lower than the FactSet consensus of RMB5.79 billion, and deliveries between 18,000 and 19,000 EVs. XPeng stock is down 19.1% in the last three months through Thursday, while iShares MSCI China Exchange-Traded Fund MCHI,
0.3% and the S&P 500 SPX slipped,
Has increased by 2.8%.