What happened
Racing off the starting line, shares of XPeng (XPEV) are off to a strong start during the first day of trading in 2023. On Dec. 31, 2022, the electric vehicle (EV) company reported strong vehicle delivery figures for December and the fourth quarter of 2022, and investors are voicing their approval of the news today.
As of 10:46 a.m. ET, XPeng's stock has climbed 6.5%, having retreated from its earlier rise of 10.4%.
So what
XPeng hit a speed bump in November, but it fared much better in December. The company reported 11,292 EV deliveries last month, a 94% increase over deliveries in November. Deliveries of the company's G9 SUV were particularly strong, climbing 160% in December compared to November.
With regard to the last quarter of 2022, XPeng also achieved strong growth. Reporting total vehicle deliveries of 22,204 for Q4 2022, XPeng grew deliveries 23% compared to the same period in 2021.
In addition to providing details on its vehicle deliveries, XPeng also reported that it released its first over-the-air update to G9 customers in China on Dec. 27. According to XPeng, the update introduced "the industry's first full-scenario, always-on voice assistant system to the mass market" as well as other benefits including optimized super fast charging, vehicle control, and smart cockpit capabilities.
Now what
XPeng's growth in vehicle deliveries last month is certainly noteworthy, but investors should tread carefully before deciding to park the EV stock in their portfolios. While the Q4 2022 deliveries exceeded the guidance management provided during the company's third-quarter earnings presentation, investors will want to see if the company is equally successful in achieving its Q4 2022 revenue guidance of 4.8 billion yuan to 5.1 billion yuan, as well as check on the company's profitability when it reports Q4 2022 earnings.
