(Yicai) March 19 -- Xpeng Motors’s stock price tumbled despite the Chinese electric vehicle startup reporting a smaller loss and wider gross margin for last year.

Xpeng [HKG: 9868] ended down 5.8 percent at HKD89.55 (USD11.52) a share in Hong Kong today, after earlier plunging by as much as 8 percent. The stock reached a 52-week high of HKD106 earlier this month. In pre-market trading in New York, the company [NYSE: XPEV] was up 2.9 percent at USD23.29 as of 7.29 a.m. local time, after sinking 7.8 percent yesterday.

The net loss shrank more than 44 percent to CNY5.8 billion (USD790 million) in the 12 months ended Dec. 31, with gross margin expanding to 14.3 percent from 1.5 percent, the Guangzhou-based company’s unaudited earnings report showed yesterday. Revenue jumped 33 percent to CNY40.9 billion (USD5.6 billion).

Xpeng reduced the loss through a combination of strategic efforts, mainly focused on increasing vehicle deliveries and fattening margins. Deliveries climbed 34 percent from the previous year to 190,068 units, boosting vehicle sales revenue.

For the fourth quarter, Xpeng logged a net loss of CNY1.3 billion (USD180 million), basically unchanged from a year ago. Revenue rose 23 percent to CNY16.1 billion. Gross margin increased for the sixth quarter in a row, rising to 14.4 percent from 6.2 percent in the third quarter.

"In the fourth quarter of 2024, we achieved a series of notable results that reflect holistic upgrade in our capabilities to grow scale," Chairman and Chief Executive He Xiaopeng said on the carmaker’s earnings conference call. "We are well-positioned to significantly expand our market share in the smart electric vehicle industry both in China and globally.”

He, who co-founded Xpeng in 2014, expressed confidence that sales can more than double this year.

The firm delivered 60,803 vehicles in January and February, and expects the first-quarter figure to come in at between 91,000 and 93,000, up 317 percent to 326 percent from a year earlier. It sees revenue widening 129 percent to 140 percent to between CNY15 billion and CNY15.7 billion.

New Models

Xpeng released the upgraded versions of the G6 and G9 sports utility vehicles on March 13. The former is priced between CNY176,800 and CNY198,800 (USD24,400 and USD27,500), and the latter between CNY263,800 and CNY278,800, making them as much as 28 percent less costly than previous versions.

Both the new G6 and G9 feature Xpeng's Turing Artificial Intelligence Driving System and support ultra-fast charging.

In the second half of this year, Xpeng plans to deliver several new products, including battery EVs and cars equipped with the Kunpeng Super Electric System, He said. "Most of our models will feature dual-energy or power, significantly broadening our addressable market through super electric models," he noted.

"By the end of 2026, we'll have a comprehensive product lineup across the CNY100,000 to CNY500,000 price range, covering all mainstream segments, from compact to large models," He pointed out.

The Road Ahead

He also highlighted Xpeng's commitment to artificial intelligence. "I believe that AI will accelerate the development of Level-3 and -4 autonomous driving in the automotive sector," he said. “We are committed to building Xpeng into an AI-empowered global automotive company and a smart technology brand beloved by users worldwide.”

Xpeng identified three primary growth trajectories. First, the firm is working on AI-powered vehicles. Second, it is focusing on global market expansion, actively broadening its presence beyond China and into overseas markets. And lastly, Xpeng is developing humanoid robots that can seamlessly integrate with the auto industry, he said.

On Feb. 6, He announced that Xpeng and its flying car affiliate Xpeng Aeroht will invest about CNY95 billion in research and development this year, of which about CNY45 billion will be allocated to AI initiatives.

"By 2026, we can actually mass-produce our flying cars," He said. “And by that time, you'll be able to see that Xpeng will be the first in China, if not globally, to actually mass-produce flying cars.”

Editor: Futura Costaglione