China electric vehicle maker XPeng said Monday its loss in the first quarter of 2022 more than doubled from a year earlier amid continuing supply chain uncertainties facing China’s auto industry.
Alibaba Group-invested XPeng lost 1.7 billion yuan, or $268.3 million in the first three months of 2022 compared with a loss of 786.6 million yuan a year earlier. Red ink also increased from 1.28 billion in the fourth quarter of 2021.
Automakers in China, the world’s largest vehicle market, have been squeezed by Covid-related lockdowns that have disrupted operations at manufacturers with operations in the country including Tesla and NIO. Fallout from disruptions in the country will be “gigantic” for industry globally, according to Bill Russo, CEO of Shanghai-based consultant Automobility. (See interview here.)
XPeng shares have lost more than half of their value in New York trading since January. They also trade in Hong Kong.
Guangzhou-headquartered XPeng, led by billionaire He Xiaopeng, said revenue rose by 152% from a year earlier to 7.45 billion yuan for the first quarter of 2022, an increase of 152.6% from the same period of 2021, and a decrease of 12.9% from the fourth quarter of 2021.
“We will continue to manage supply chain uncertainties and we remain confident in our exciting product pipeline planned for 2022 and beyond,” XPeng President Brian Gu said in a statement today. “We expect to further leverage our economies of scale and continue to improve our operating efficiency.”
XPeng said earlier this month it “has been and is continuing to actively navigate through the Covid situation, which in turn is affecting the overall supply chain, manufacturing and transportation of automobiles in China.”
XPeng delivered 34,561 vehicles in the first quarter of 2022, representing an increase of 159% from 13,340 in the corresponding period of 2021.
He, XPeng’s co-founder, has a fortune worth $4.1 billion on the Forbes Real-Time Billionaires List today.
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