Chinese EV manufacturer XPeng Inc. (NYSE:XPEV) reported a month-over-month decline in August deliveries as production transition underway amid the planned September deliveries of its mid-cycle facelift version of G3 SUV impacted output. The company also sounded out the influence of supply chain disruptions.
Citing the strong product momentum, the company expects monthly deliveries to hit 15,000 by the fourth quarter.
What Happened: XPeng said its August deliveries jumped 172% year-over-year to 7,214 vehicles. However, it was down 10.3% from the 8,040 vehicles delivered in July.
The August number comprised 6,165 P7 EV sedans, up 209% year-over-year, and 1,049 G3 SUVs.
Production Transition Hurts: With the planned deliveries of the refreshed G3i in September, production preparation and switching will likely impact the production of G3 and G3i for a few weeks, XPeng said. The company expects to increase the delivery scale of the G3i in the fourth quarter.
XPeng also flagged the semiconductor shortage and COVID-19 resurgence in certain regions that have affected the auto supply chain. It noted that its Zhaoqing factory can now produce the G3i, P7, and P5 concurrently. In August, the company had added a second production shift at the Zhaoqing factory.
XPeng expects its monthly delivery volume to reach 15,000 in the fourth quarter potentially.
XPeng plans to officially launch the P5 family sedan, its third production model, on Sept. 15, with the deliveries starting in October, the company added.
Price Action: In premarket trading Wednesday, XPeng shares were down 1.76% at $41.75.
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