By Clarence Leong
XPeng Inc. said Wednesday that it expects its fourth-quarter vehicle deliveries to decline as much as 52% as the Chinese electric-car maker reported a wider loss for the third quarter.
XPeng posted net loss of 2.38 billion yuan ($332.4 million) for the three months ended Sept. 30, compared with a CNY1.59 billion loss a year earlier. The result is partly due to higher research and development expenses, which rose 19% to CNY1.50 billion, mainly resulting from increased employee compensation, it said.
Revenue for the period rose 19% to CNY6.82 billion, with vehicle sales increasing 14% to CNY6.24 billion, it said.
Gross margin fell 0.9 percentage point to 13.5%, with vehicle margin down 2.0 percentage points to 11.6%, XPeng said.
For the fourth quarter, the company said it expects to deliver 20,000 to 21,000 vehicles, representing a decline of 50%-52% from a year earlier. Fourth-quarter revenue is expected to fall 40%-44% to between CNY4.8 billion and CNY5.1 billion, it said.
It said the outlook is based on "current market conditions" and reflects its estimates of "market and operating conditions, and customer demand."
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(END) Dow Jones Newswires