XPeng Motors shares rose more than 12%: the company's earnings and guidance were better than expected

On May 21, XPeng Motors (XPEV. N) shares rose sharply in the early days of the U.S. stock market, rising more than 12%. The company announced on Wednesday that the first quarter adjusted net loss narrowed sharply year-on-year, boosted by a surge in car deliveries and a record gross margin. According to the financial report, XPeng Motors' revenue in the first quarter was 15.81 billion yuan, compared with 6.55 billion yuan in the same period last year, an increase of 141.5% year-on-year. Gross margin was recorded at 15.6%, more than 1 percentage point higher than expected, an increase of nearly 3 percentage points year-on-year. In addition, the company expects deliveries in the second quarter to increase by at least 2.4 times year-on-year. He Xiaopeng, chairperson and chief executive of XPeng Motors, said: "We are confident that not only will we achieve our sales growth target of more than doubling this year, but the company will also be profitable in the fourth quarter and achieve full-year free cash flow."