BEIJING, November 30  (TMTPOST)— The American depositary receipts (ADRs) of Xpeng Inc., skyrocketed by around 46.9% on Wednesday, setting the highest close since October 5 and driving the Nasdaq Golden Dragon China Index, which tracks China-exposed firms listed in the United States, settled 9.6% higher with record monthly gain of more than 40% in November.

Source: Visual China

Earlier Wednesday, Xpeng posted weaker-than-expected results both the top and bottom line. In the quarter ended September 30, its total revenues rose 19.2% year-over-year (YoY) to RMB6.82 billion (US$960 million), falling short of the analysts’ expectation of RMB7.26 billion, and the net loss expanded 49.7% YoY to RMB2.38billion, compared with the estimated loss of RMB2.09 billion. however, the non-GAAP basic and diluted net loss per American depositary share (ADS) was RMB1.29, better than the expected loss of RMB2.41, and the quarterly gross margin declined 0.9 points YoY to 13.5% versus the forecast of 12.1%.

Xpeng delivered a total of 29,570 electric vehicles (EVs) in the third quarter with a 15% YoY increase, missing the market projected 30,300 vehicles. As its delivery fell more than 14% from the previous quarter, the revenues from vehicle sales decreased 10% sequentially to RMB6.24 billion, representing a 14.3% YoY growth that significant cooling from the second quarter’s yearly growth of 93.6%.

Xpeng expected to deliver between 20,000 and 21,000 units, up YoY approximately 49.7% to 52.1%, weaker than the market projected43, 400 units. Xpeng management, instead, expressed confidence in recovery in the coming months.  

“As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price,” the president Hongdi Brian Gu said.

The delivery outlook of the fourth quarter was hit by various factors such as the Covid-19 pandemic and capacity ramp-up, the chairman and CEO He Xiaopeng explained in a conference call following the financial results. He said his company will overcome the adverse impact of the Covid and speed up internal restructuring to address the backlog order with faster delivery. He noted management expected delivery in November to be no less than 5,800 units, so the delivery next month is expected to rebound sharply and back to more than 10,000 units.