HONG KONG, Nov 24 (Reuters Breakingviews) – Electric-car maker Xpeng (9868.HK) is showing off some impressive financial roadworthiness. It tripled sales to 25,666 units in the three months to the end of September, compared to a year earlier. That revved up revenue by 187%, despite supply-chain snarls. That’s impressive, but so are the figures further down the release on Tuesday.
The company run by He Xiaopeng boosted the top line without a commensurate acceleration in general expenses, which rose less than 30%. Rival Nio’s (NIO.N) spending on admin and the like almost doubled in the quarter to fuel its 117% sales growth, despite cost controls. At the same time, Xpeng is keeping the pedal to the metal for research and development, splurging twice as much as last year. That supports a commitment to staying ahead in autonomous driving. read more
Even after a more than 8% jump on the results, its shares trade at 4.2 times forecast sales, cheaper than Nio and Li Auto (2015.HK), according to Refinitiv. Investors could be in for a fun ride. (By Katrina Hamlin)
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