XPeng management expects November deliveries to be no less than 5,800 units, hinting that December deliveries are expected to rebound to around 10,000 units.
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XPeng Motors reported third-quarter earnings that beat expectations on Wednesday and responded to many investor concerns during a subsequent analyst call.
Here are the main points mentioned by XPeng management during the call.
XPeng expects overall deliveries to be in the range of 20,000-21,000 units in the fourth quarter due to various factors including the Covid outbreak and capacity creep.
XPeng will overcome the negative impact of Covid and accelerate internal adjustments to deliver the orders on hand more quickly.
The company's management expects November deliveries to be no less than 5,800 units, suggesting that December deliveries are expected to pick up significantly and return to the 10,000 unit level.
XPeng is moving forward with an organizational restructuring that will see chairman and CEO He Xiaopeng focus more on the company's strategy, product planning and R&D, and reduce his direct involvement in other companies within the XPeng ecosystem.
To strengthen product competitiveness and increase sales, XPeng management will listen more effectively to user needs, simplify the choice of product configurations, and improve software and hardware appeal.
XPeng management said the company is confident that it will see its flagship SUV G9 in the top three in the pure electric SUV market priced above RMB 300,000 ($42,420).
While the G9 will need to overcome challenges from the Covid epidemic and capacity creep in the short term, it is gradually expanding its user reputation with its solid range and fast charging speed.
Over the next year, as word-of-mouth builds for the G9, the model will further close the gap to the No. 1 spot, the company said.
XPeng said the company currently has three platforms, including the completed E platform and the third-generation F and H platforms scheduled for completion next year, laying the technical foundation for product upgrades and iterations.
The models based on these platforms will share a large percentage of the powertrain, intelligent driving system, chassis and electrical and electronic architecture, as well as the corresponding supply chain and manufacturing capabilities.
XPeng will launch a facelift of the P7 sedan and a B-segment SUV priced at RMB 200,000-300,000 in the first half of next year. The facelift of the P7 will improve competitiveness across the board and take on the technological advantages of the G9.
Thanks to the pre-production capacity layout, XPeng's capital expenditure requirements will drop significantly in the next few years compared to this year, and the cash flow situation is expected to improve further.
XPeng said it plans to launch its next-generation intelligent assisted driving system, XNGP, in the third quarter of next year, which will be put into use in dozens of cities.
A significant percentage of current G9 orders have chosen the XNGP-enabled Max version of the model before XNGP has begun to be offered.
Next year, driven by product reputation and declining costs, XNGP will expand to more XPeng models for a nationwide user base to accelerate its popularity.