Xpeng shares rise 10 % in Hong Kong while the Chinese car maker expects optimistic revenue

The Chinese company Xpeng, the Chinese company, witnessed its shares in Hong Kong, more than 10 % on Thursday after optimistic profits and stronger revenues expectations than expected for the second quarter.

Its shares rose up to 10.2 % to $ 85.5 Hong Kong ($ 10.86), the last trading was 7 % higher, and got a year’s gains to 78 %.

The revenues of the first quarter of the car maker in Guangzhou have multiplied in the first quarter of the previous year, driven by strong sales.

Xpeng said it has handed over 94,008 cars in the first three months of this year, more than four times the sales volume in the previous year.

This improved line helped narrow its net loss for the first quarter to 664 million yuan, compared to 1.37 billion yuan a year ago, and raised its total margin to 15.6 % for a quarter of 12.9 % in the previous year.

The company is a major player in the excessive EV market in China, but it has struggled to make a profit amid increasing competition and slow domestic demand.

Analysts are widely expecting that Xpeng will turn off in the fourth quarter this year, thanks to the powerful sales momentum and the new models pipeline.

The company launched many new products, including Mona’s collective market sales last August and Renewable pioneering model x9It is characterized by an independent advanced driving system.

The auto company said it aims to start the mass production of vehicles equipped with the features of independent 3 level driving in China by the end of the year, and it is a great promotion from the most common level of 2 levels currently.

For the second quarter, Xpeng said it expects revenue of 17.5 billion yuan to 18.7 billion yuan, compared to the consensus expectations of 17.2 billion yuan, according to the data collected by LSEG.

It is expected to be offered 102,000 and 108,000 electric cars in the second quarter – a jump of about 237.7 % to 257.5 % for the previous year.

This optimistic expectations of investor feelings, which sent 13 % Xpeng shares in the United States to close at $ 22.25, occupying a year’s march for more than 88 %. However, it is outside its record of more than $ 72 each in November 2020, according to LSEG data.

BYD competition has witnessed shares in Hong Kong, more than 74 % so far this year, Li Auto has increased by more than 22 %, while NIO lost more than 11 %.

– Arjun Kharpal from CNBC contributed to this story.