Shares of NIO Inc. (NYSE:NIO) are falling on heavy trading volume Wednesday due to rival EV company Xpeng (NYSE:XPEV) missing estimates for the first quarter and reporting a weak outlook for next quarter.
What To Know: XPeng reported quarterly losses of 37 cents per share which missed the analyst consensus estimate for losses of 26 cents per share by 42.31%. This is a 32.14% decrease from the same period last year.
The company reported quarterly sales of $587.31 million which missed the analyst consensus estimate of $741.07 million by 20.75%. This is a 50.06% decrease over sales of $1.18 billion in the same period last year.
XPeng expects second quarter revenue Of $657.7 million-$686.9 million, below consensus estimates, and deliveries of 21,000 to 22,000 vehicles, a year-over-year decrease of 36.1% to 39%
He Xiaopeng, chairman and CEO of XPeng softened the news with optimistic views surrounding his decisions and how they will impact the company’s future by saying, “during the first quarter of 2023, I took actions to make changes to our strategy, organizational structure and senior management team decisively. I am fully confident in taking our Company into a virtuous cycle driving product sales growth, team morale, customer satisfaction and brand reputation over the next few quarters”.
He went on to tout the G6, the first production model built on Xpeng’s next-generation technology architecture SEPA2.0, anticipated for launch in June 2023.
Nio held its ES6 launch event on Wednesday.
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NIO Price Action: NIO shares were down 9.66% at $7.91 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Nio.