Why XPeng Stock Tumbled 12% Today
Heading into the quarter, analysts had predicted this Chinese electric vehicle manufacturer would lose only $0.26 per share on $741 million in quarterly sales. XPeng lost money on every car it sold, as gross margin on vehicle sales flipped from positive 10.4% to negative 2.5%. Total gross margin company-wide (including positive gross margin from services) fell from 8.7% to just 1.7%, a decrease of 7 full percentage points.