The shortage of chips will last another quarter – fr

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The shortage of chips will last another quarter – fr


Xpeng Motors is launching the P5 sedan at an event in Guangzhou, China on April 14, 2021. The P5 is Xpeng’s third production model and features so-called Lidar technology.
Arjun Kharpal | CNBC
BEIJING – Chinese electric car start-up Xpeng expects the global chip shortage to persist for at least three more months.
Automakers around the world have had to cut back on production due to a shortage of semiconductors or chips. Strong demand for electronics, trade tensions between the United States and China, and a major factory fire have affected the highly specialized industry’s ability to manufacture enough chips.

“What we have seen is that this tense situation will continue into the next quarter or so,” Brian Gu, vice president and chairman of Xpeng, said on CNBC’s “Squawk Box Asia” Friday.

The challenge is that “the visibility of chip supply is up to the minute,” Gu said. “We are paying very, very close attention to the situation. At the moment, the impact is limited and this is reflected in our advice. “

Xpeng’s U.S.-listed shares fell nearly 4.9% in Thursday’s trading session, despite the startup reporting higher than expected revenue of 2.95 billion yuan (456 , $ 7 million) for the first quarter.
The stock is now down nearly 45% for the year so far, but still holds gains of over 50% since its IPO in August.

Xpeng expects to deliver between 15,500 and 16,000 vehicles in the second quarter. The company said it delivered 13,340 cars in the first three months of the year, exceeding its forecast of 12,500 cars.

Software revenue growth

While car sales make up the majority of Xpeng’s revenue, the company noted that first quarter results were supported by customer demand for its driver assistance software. The start-up said it recorded revenue from the software for the first time after rolling out an upgrade to paying customers in the first quarter.

Gu said on CNBC that more than 25% of customers paid for the assisted driving software last month, up from 20% in the last quarter. He expects greater use of Xpeng software and lower vehicle production costs to increase the company’s margin in the near future.

Later this year, Xpeng plans to release a second electric sedan, the P5, which includes support for the latest version of the startup’s driver assistance software.

The vehicle margin, a measure of profitability, rose to 10.1% in the first quarter from 6.8% in the previous quarter. The company reported a year-over-year increase in net losses of 786.6 million yuan in the first quarter, compared to 649.8 million yuan in the same period last year. . Research and development costs increased 72.2% from a year ago to 535.1 million yuan.

Moving forward in Europe

Xpeng continued its European expansion plans in the first quarter by delivering more than 300 units of its G3 SUV to Norway, according to the company. The start-up had sent 100 of the cars to the market in December. Xpeng plans to start delivering its P7 sedan to Norway in the second half of the year.

Competition in this overseas market is expected to resume with plans by rival Chinese electric car maker Nio to open a showroom and start deliveries to Norway later this year. Nio shares fell 7.3% on Thursday and nearly 36% for the year so far.

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