BEIJING — Chinese language electrical automobile start-up Xpeng expects the worldwide chip scarcity will persist for no less than one other three months.
Automakers world wide have needed to minimize manufacturing attributable to a shortfall in semiconductors, or chips. Excessive demand for electronics, U.S.-China commerce tensions and a major factory fire have affected the extremely specialised trade’s capability to fabricate sufficient chips.
“What we have seen is that this tight state of affairs will proceed for the following quarter or so,” Brian Gu, vice chairman and president of Xpeng, mentioned Friday on CNBC’s “Squawk Box Asia.”
The problem is “the visibility of chip provides is by the minute,” Gu mentioned. “We’re paying very, very shut consideration to the state of affairs. Proper now, the impression is restricted and it is mirrored in our steering.”
Xpeng’s U.S.-listed shares fell practically 4.9% in Thursday’s buying and selling session regardless of the start-up reporting greater-than-expected income of two.95 billion yuan ($456.7 million) for the primary quarter.
The inventory is now down practically 45% for the yr up to now, however nonetheless holds features of greater than 50% from its IPO in August.
Xpeng expects to ship between 15,500 and 16,000 automobiles within the second quarter. The corporate mentioned it delivered 13,340 automobiles within the first three months of the yr, topping its forecast for 12,500 automobiles.
Rising income from software program
Whereas automobile gross sales account for almost all of Xpeng’s income, the corporate famous first-quarter outcomes have been helped by buyer demand for its assisted driving software program. The beginning-up mentioned it recorded income from the software program for the primary time after a rollout of an upgrade to paying customers within the first quarter.
Gu mentioned on CNBC that greater than 25% of shoppers have paid for the assisted driving software program within the final month, up from 20% final quarter. He expects better use of Xpeng’s software program and decrease automobile manufacturing prices will enhance the corporate’s margin within the close to future.
Later this yr, Xpeng plans to launch a second electrical sedan, the P5, which incorporates assist for the newest model of the start-up’s assisted driving software program.
Automobile margin, a measure of profitability, rose to 10.1% within the first quarter, up from 6.8% within the prior quarter. The corporate did report a year-on-year enhance in web losses, of 786.6 million yuan within the first quarter, versus 649.8 million yuan throughout the identical interval final yr. Analysis and improvement bills rose 72.2% from a yr in the past to 535.1 million yuan.
Transferring forward into Europe
Xpeng pressed forward with its European expansion plans within the first quarter by delivering greater than 300 models of its G3 SUV to Norway, in response to the corporate. The beginning-up had despatched 100 of the automobiles to the market in December. Xpeng expects to start delivering its P7 sedan to Norway within the second half of the yr.
Competitors in that abroad market is about to choose up with rival Chinese language electrical automobile maker Nio’s plans to open a showroom and begin deliveries in Norway later this year. Nio’s shares fell 7.3% Thursday and are down practically 36% for the yr up to now.