Xpeng sinks as the front-line lines advance

HONG KONG, Aug. 27 (Reuters Breakingviews) – Chinese electric vehicle maker boosts speed. Revenue rose more than 500% in the quarter ended June, compared to the previous year. While Xpeng (9868.HK) made little progress on the bottom line, which stagnated at 1.2 trillion yuan ($ 185 million), similar to 2020 levels, reflecting strong investment in research and development to feed the next acceleration. According to Daiwa analysts, the company led by He Xiaopeng has increased its R&D team by about a third compared to last year.

A comparison with rival Nio (NIO.N), which nearly halved its net loss in the second quarter, is flattering. When that company was at a similar stage in its public life, it was in worse condition than Xpeng, which floated just last year. Twelve months after Nio’s debut, he was navigating a major vehicle withdrawal and a cash crisis. Shares of Xpeng in New York and Hong Kong barely yielded after Thursday’s results. About 13 times the sales advanced by Refinitiv, the shares are already priced richer than peers Nio and Li Auto. Expectations can afford to be high. (By Katrina Hamlin)

On Twitter http://twitter.com/breakingviews

Capital calls: more concise information on global finance:

Money is important to dollar stores

Reader Hero’s stock pickup boss read more

Shiseido finds less can be more in makeup read more

Delta Air Lines carries a Covid vaccine stick more information

The frenzy of UK mergers and acquisitions extends to hazardous waste read more

Edition of Una Galani and Sharon Lam