Latest news with #XPeng
Yahoo
4 days ago
- Business
- Yahoo
Will Cost Control Measures Help NIO Achieve Its Break-Even Target?
NIO Inc. NIO has been implementing a comprehensive set of cost-cutting and efficiency-improvement measures to achieve profitability. The company has systematically reviewed all projects and organizational functions and halted or delayed initiatives that are unlikely to yield a return on investment within the enhance operational efficiency, NIO introduced the Veeco product line, an integrated R&D mechanism combining resources from its NIO, ONVO and Firefly brands. Similarly, in its industrialization cluster, NIO restructured logistics, quality and supply-chain functions by eliminating overlapping roles and optimizing workflows. Sales and service teams have also undergone performance-driven consolidated roles and responsibilities across back-end departments to boost productivity and reduce operational costs. These collective efforts are expected to reflect in improved results starting from the second has set specific cost-reduction targets. It planned to lower R&D spending by 15% in the second quarter, with a further goal of reducing the expense to RMB 2-2.5 billion by the fourth quarter, indicating a decline of 20-25% year over year. Meanwhile, the company is exercising strict control over SG&A expenses, balancing marketing investments against returns and plans to reduce these costs sequentially. By the fourth quarter, NIO targets non-GAAP SG&A expenses to be within 10% of its revenues as part of the broader breakeven target. NIO carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Cost Optimization Strategies of NIO's Peers XPeng Inc. XPEV recorded seven straight months of vehicle margin improvements in the first quarter of 2025, driven mainly by ongoing cost-cutting initiatives and the benefits of economies of scale. With projected production growth and stronger volume potential in the third and fourth quarters, XPeng anticipates achieving greater scale, which should further reduce cost allocations and boost vehicle margins. XPeng expects its overall gross margin to approach the high-teens range, positioning it to reach profitability by the fourth the first quarter of 2025, Li Auto's LI SG&A expenses declined 15% year over year. This reduction was mainly caused by lower employee compensation, enhanced operational efficiency and reduced spending on marketing and promotions. Li Auto is realizing significant cost savings as its partners become more capable and engage in closer collaboration. NIO's Price Performance, Valuation and Estimates NIO has outperformed the Zacks Automotive-Domestic industry year to date. Its shares have gained 10.8% compared with the industry's growth of 3.3%. YTD Price Performance Image Source: Zacks Investment Research From a valuation perspective, NIO appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.63, higher than the industry's 0.45. Image Source: Zacks Investment Research NIO's EPS Estimates Revision The Zacks Consensus Estimate for 2025 EPS has moved up 16 cents in the past 60 days. The same for 2026 EPS has moved down a penny in the past 30 days. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
5 days ago
- Automotive
- News.com.au
‘Musk on mute' as pet project crashes
Tesla has posted one of its weakest quarters in years, as CEO Elon Musk battles to keep the once dominant EV maker's market share. In its earnings for the second quarter released in the US on Wednesday, the company announced that revenue was down 12 per cent year-on-year with profit falling short of Wall Street expectations. It was the greatest fall in quarterly revenue for Tesla in more than a decade. Adjusted earnings for the second quarter came in at USD $0.40 per share, missing analysts' forecasts. Free cash flow plunged 89 per cent compared to a year earlier. Company revenue fell to $US$22.5bn ($34.1bn) for the April-June quarter down from $US25.5bn a year before. Profit fell from $US1.4bn to US$1.2bn. 'AUTONOMY IS THE STORY' Despite the figures, Tesla remains the largest electric vehicle manufacturer in the United States however Q2 delivers were down 14 per cent, the second straight quarterly fall. The company is facing growing competition, particularly from Chinese rivals like BYD, XPeng, Zeekr, GWM and Chery. It has also faced brand damage following CEO Elon Musk's high-profile political activity and brief advisory role to the Trump administration. In the earnings call with analysts, Musk focused on the future of Tesla, particularly its plans for autonomous driving, calling the push into self-driving taxis critical to the company's future. 'Autonomy is the story,' he said. Musk said he has plans to expand Tesla's limited robotaxi service in Austin to half of the US population by end of next year. But he acknowledge that the timeline was heavily dependent on regulatory approval. BUYING INTO MUSK'S PROMISES Stake market analyst Samy Sriram said investors were left with more questions than answers. 'There's very little in Tesla's earnings report that will change anybody's mind on the stock,' she said. 'Bears will point to bleaker than predicted numbers, with revenue, EPS and cash flow all down and declining sales in core markets. Bulls will note pre-production of a more affordable model, a refreshed Model Y SUV, an uptick in Asia and the promise of Robotaxis.' However, when Tesla CFO Vibhav Taneja was asked about the progress of the Robotaxi pilot, he said only a 'handful of vehicles' were active and that the program has logged 7,000 miles of operation since launching on 22 June 2025. Sriram said the numbers 'don't make for pretty reading,' pointing in particular to a 51 per cent drop in revenue from automotive regulatory credits, what other car makers buy from Tesla when they can't comply with government emissions rules. 'Analysts flagged beforehand this could be a sore spot for Tesla, but it's still a pain point on the balance sheet,' she said. However, she added there are 'some bright spots'. 'There's an 18 per increase in Supercharging stalls added, and gross profits from energy storage deployments hit a record $846 million this quarter,' she said. Investors and analysts still remained cautious as Tesla shares fell more than four per cent in after-hours trading and data from Stake showed 56 per cent of trades were weighted towards selling following the earnings call. 'The market seems to be cautious. There's definitely a bit of scepticism from Wall Street - after the earnings call,' she said. 'Ultimately, the results and reaction are probably a reflection that if you buy into Elon Musk's promises, you'll probably still buy into Tesla. If you don't, you won't.' eToro market analyst Josh Gilbert said the results show a company 'caught in transition'. 'There's a road ahead, but Tesla is stuck in the slow lane, carrying the weight of underwhelming vehicle sales today while pushing the ambitious promises of Robotaxis, AI, and energy dominance tomorrow,' he said. Tesla's shift towards AI, robotics and energy storage was a point of conversation during the earnings call but Gilbert said there was a lack of detail regarding delivery timelines or commercial impact. 'While Tesla insists its energy and AI businesses are 'more critical than ever', the company is offering little detail on how or when these emerging divisions will meaningfully move the needle for investors,' he said. CHEAP MODEL ON THE WAY The company confirmed its lower-cost Tesla model has entered early production, but volume output is not expected to ramp up until late 2025, pushing its commercial impact further out. Gilbert said Musk's low energy during the earnings call may not help rebuild confidence. 'Musk's low-energy tone on the call will likely disappoint shareholders; it felt like Musk on mute rather than Musk the magician, particularly at a time when a steadier, more confident hand at the wheel was needed,' he said. While Tesla continues its plans for full autonomy and global energy dominance, with no update on delivery guidance and Tesla's second-quarter drop, the future looks uncertain. 'The bigger picture here is that Tesla is undoubtedly a technology business rather than an automaker,' he said. 'But with its traditional profit engine stalling, Tesla's visionary plans need to start producing rather than just promising. 'Tesla's long-term vision continues to evolve, from the rollout of its Robotaxi platform to leadership in AI and robotics, and the eventual launch of more affordable models. But in the short term, with weakening fundamentals, leadership distractions and continued delivery shortfalls, the pressure on the share price is unlikely to ease anytime soon.'
Herald Sun
6 days ago
- Automotive
- Herald Sun
Tesla shares plunge after revenue drops 12% in weak Q2 earnings
Tesla has posted one of its weakest quarters in years, as CEO Elon Musk battles to keep the once dominant EV maker's market share. In its earnings for the second quarter released in the US on Wednesday, the company announced that revenue was down 12 per cent year-on-year with profit falling short of Wall Street expectations. It was the greatest fall in quarterly revenue for Tesla in more than a decade. RELATED: China ramps up Aussie takeover Adjusted earnings for the second quarter came in at USD $0.40 per share, missing analysts' forecasts. Free cash flow plunged 89 per cent compared to a year earlier. Company revenue fell to $US$22.5bn ($34.1bn) for the April-June quarter down from $US25.5bn a year before. Profit fell from $US1.4bn to US$1.2bn. 'AUTONOMY IS THE STORY' Despite the figures, Tesla remains the largest electric vehicle manufacturer in the United States however Q2 delivers were down 14 per cent, the second straight quarterly fall. The company is facing growing competition, particularly from Chinese rivals like BYD, XPeng, Zeekr, GWM and Chery. It has also faced brand damage following CEO Elon Musk's high-profile political activity and brief advisory role to the Trump administration. In the earnings call with analysts, Musk focused on the future of Tesla, particularly its plans for autonomous driving, calling the push into self-driving taxis critical to the company's future. MORE: Aussies 'not ready' for advanced driver tech 'Autonomy is the story,' he said. Musk said he has plans to expand Tesla's limited robotaxi service in Austin to half of the US population by end of next year. But he acknowledge that the timeline was heavily dependent on regulatory approval. BUYING INTO MUSK'S PROMISES Stake market analyst Samy Sriram said investors were left with more questions than answers. 'There's very little in Tesla's earnings report that will change anybody's mind on the stock,' she said. 'Bears will point to bleaker than predicted numbers, with revenue, EPS and cash flow all down and declining sales in core markets. Bulls will note pre-production of a more affordable model, a refreshed Model Y SUV, an uptick in Asia and the promise of Robotaxis.' However, when Tesla CFO Vibhav Taneja was asked about the progress of the Robotaxi pilot, he said only a 'handful of vehicles' were active and that the program has logged 7,000 miles of operation since launching on 22 June 2025. MORE: The end of travel as we know it Sriram said the numbers 'don't make for pretty reading,' pointing in particular to a 51 per cent drop in revenue from automotive regulatory credits, what other car makers buy from Tesla when they can't comply with government emissions rules. 'Analysts flagged beforehand this could be a sore spot for Tesla, but it's still a pain point on the balance sheet,' she said. However, she added there are 'some bright spots'. 'There's an 18 per increase in Supercharging stalls added, and gross profits from energy storage deployments hit a record $846 million this quarter,' she said. Investors and analysts still remained cautious as Tesla shares fell more than four per cent in after-hours trading and data from Stake showed 56 per cent of trades were weighted towards selling following the earnings call. 'The market seems to be cautious. There's definitely a bit of scepticism from Wall Street - after the earnings call,' she said. 'Ultimately, the results and reaction are probably a reflection that if you buy into Elon Musk's promises, you'll probably still buy into Tesla. If you don't, you won't.' eToro market analyst Josh Gilbert said the results show a company 'caught in transition'. 'There's a road ahead, but Tesla is stuck in the slow lane, carrying the weight of underwhelming vehicle sales today while pushing the ambitious promises of Robotaxis, AI, and energy dominance tomorrow,' he said. Tesla's shift towards AI, robotics and energy storage was a point of conversation during the earnings call but Gilbert said there was a lack of detail regarding delivery timelines or commercial impact. 'While Tesla insists its energy and AI businesses are 'more critical than ever', the company is offering little detail on how or when these emerging divisions will meaningfully move the needle for investors,' he said. CHEAP MODEL ON THE WAY The company confirmed its lower-cost Tesla model has entered early production, but volume output is not expected to ramp up until late 2025, pushing its commercial impact further out. Gilbert said Musk's low energy during the earnings call may not help rebuild confidence. 'Musk's low-energy tone on the call will likely disappoint shareholders; it felt like Musk on mute rather than Musk the magician, particularly at a time when a steadier, more confident hand at the wheel was needed,' he said. MORE: Tesla reveals major Robotaxi move While Tesla continues its plans for full autonomy and global energy dominance, with no update on delivery guidance and Tesla's second-quarter drop, the future looks uncertain. 'The bigger picture here is that Tesla is undoubtedly a technology business rather than an automaker,' he said. 'But with its traditional profit engine stalling, Tesla's visionary plans need to start producing rather than just promising. 'Tesla's long-term vision continues to evolve, from the rollout of its Robotaxi platform to leadership in AI and robotics, and the eventual launch of more affordable models. But in the short term, with weakening fundamentals, leadership distractions and continued delivery shortfalls, the pressure on the share price is unlikely to ease anytime soon.' Originally published as 'Musk on mute' as pet project crashes
Business Insider
22-07-2025
- Automotive
- Business Insider
I test drove XPeng's electric minivan. Its back seats are the business class of the road.
Last year, over 17 million EVs were produced globally, and China made most of them. Our reviewer drove the XPeng X9, a seven-seater EV minivan, around Singapore for three days. The back seats felt like business class, and it made him rethink what a people mover can be. Chinese EVs are coming in every shape and size — including luxury minivans. I spent three days driving the XPeng X9 around Singapore to find out what this futuristic people-mover is all about. I was seriously impressed. XPeng, founded in 2014 and based in Guangzhou, isn't just making EVs — it's also dabbling in flying cars and robotics, making it one of the more ambitious players among a cutthroat global battle for transportation dominance. "Competition in 2025 will be fiercer than ever," XPeng's CEO, He Xiaopeng, wrote in a letter to employees last year. He added that the next two years mark the "elimination round." In 2024, over 17 million EVs were produced globally, a 25% jump from 2023. Over 70% of them were made in China, per the International Energy Agency. As of March 2025, XPeng is selling cars across Asia and Europe, with plans to expand to the Middle East and Africa. The X9 was inspired by the CEO's experience balancing family life with his role as an entrepreneur and a "hands-on father," Alex Tang, the head of XPeng's international sales and service division, told Business Insider in a statement. "He envisioned a vehicle that drives with the agility of an SUV, carries the sleek silhouette of a coupe, and delivers the comfort and practicality of a premium MPV," Tang said. On the outside The seven-seater X9, first released in October 2023, is priced between 359,800 and 419,800 Chinese yuan, or $50,185 and $58,550. It grabbed my attention right away, mostly because of its shape. Instead of following the usual luxury minivan formula, XPeng gave it a bold, trapezoidal twist. It feels like the Tesla Cybertruck of the EV multipurpose vehicle world: sharply styled, tech-packed, and built to rethink what a people mover can be. The proportions and lines are spot-on, topped off with sleek 20-inch alloys. Getting behind the wheel The X9 is big — really big. At 208 inches long, 78 inches wide, and 70 inches tall, it's the longest of any Chinese electric minivan on the market. While it's not the slimmest in width, its overall dimensions still make it one of the most space-efficient in its class. For perspective, it's even longer than a Mercedes-Benz S-Class. But the real surprise was how easily it maneuvered into tight parking spots, even parallel ones. XPeng has equipped it with an easy-to-use park assist system. It can park itself if you want it to. But if you're like me and prefer doing it yourself, the network of cameras and sensors makes the job stress-free. The system is named XPilot Parking. While it's not a function that's unique to the XPeng, no BYD models — the world's largest electric vehicle maker — offer the same feature. Another neat party trick: rear-wheel steering. It gives the X9 an edge in maneuverability — a feature typically reserved for high-end luxury sedans like the BMW 7 Series. It really shines on winding roads or when a hot hatch is tailgating and you need to stay sharp. XPeng says the X9's WLTP range exceeds 350 miles on a single charge. I couldn't validate it, as I only covered 160 miles during the three-day drive. On the inside The X9 comes fitted with standard air suspension, which you can set to Comfort, Standard, or Sport for your different driving moods. I found that for a luxury minivan like this, Sport seemed unnecessary. The setting stiffens the suspension. While it reduces body roll and improves overall handling, it also transmits more bumps and road imperfections, compromising ride comfort for everyone on board. This suspension allows drivers to raise or lower the car at the touch of a button on the 17.3-inch touchscreen. Lift it when there's flooding, or drop it for easier access when passengers are getting in or out. No other EV minivan offers this feature. The Chinese have really nailed the art of crafting luxurious interiors, and the X9 is no exception. Many Chinese cars, including the X9, now come standard with massive screens, premium materials like leather and high-quality plastics, and even reclining rear seats with massage functions. Features that were once reserved for top-tier German brands are now common in the latest generation of Chinese vehicles. One of the coolest touches of XPeng's minivan: The rear air conditioning vents are seamlessly integrated into the ceiling, like something you'd see in a convention hall. Ride in the back A car like the X9 makes calling "shotgun" pointless — the best seats are in the back. A pair of captain's chairs offers plenty of controls to find your sweet spot, plus a third row that's honestly the most comfortable and well-cushioned I've seen in my 23 years of reviewing cars. Once again, XPeng shows serious attention to detail: The third row, usually where you stash someone you'd rather not hear yapping the whole ride, is not only easy to access but actually comfortable for adults. Since this is a luxury minivan, passengers in the back get pampered with perks like a built-in fridge to keep drinks chilled and a 21.4-inch entertainment screen. And if you've got teenagers, you can hook up an Xbox to keep them entertained instead of listening to them confuse you with their Gen Alpha slang.
Yahoo
21-07-2025
- Automotive
- Yahoo
Tesla Cooling Off, XPeng Heating Up: Which EV Stock Wins Your Vote?
For years, Tesla TSLA has been the undisputed face of the electric vehicle (EV) revolution. From sleek car designs to bold bets on self-driving tech and artificial intelligence, Tesla transformed the auto industry. Today, it still stands tall with a staggering $1 trillion market cap and a relentless push into new frontiers like robotaxis. But, the hype and buzz around Tesla is not the same anymore. Growing competition, CEO Elon Musk's headline-grabbing controversies and mixed reactions to Tesla's long-awaited robotaxi reveal are testing investor patience. Meanwhile, XPeng, Inc. XPEV — a rising EV star from China — is making serious waves. Backed by a surge in China's new energy vehicle (NEV) sales and strong government support, XPeng is delivering rapid growth and rolling out its own AI-driven innovations. And while Tesla grapples with a potentially tougher U.S. regulatory environment, including the looming end of the $7,500 EV tax credit, XPeng's momentum is building fast. Year to date, XPeng stock has surged 55%, trouncing Tesla's performance. The question is whether investors should stay with the EV pioneer or bet on the fast-rising tech-savvy challenger? Image Source: Zacks Investment Research The Case for Tesla Tesla might still be the first name that pops into your mind when we talk about EVs, but cracks are starting to show. After years of strong growth, Tesla's deliveries are now heading in the wrong direction. In 2024, the company posted its first-ever annual drop in deliveries. That slump has continued into 2025, with sales falling 13% year over year in the first quarter and another 13.4% in the second quarter of 2025. Europe has been a particularly weak spot, but demand has cooled in other markets too. Tesla faces a real chance of delivering fewer vehicles in 2025 than it did in 2024. That would mark a second straight year of declining sales. Tesla hasn't released a new mass-market model in years. While competitors are flooding the market with fresh EVs at various price points, Tesla's lineup is starting to feel dated. Add in rising competition from both dedicated EV makers and traditional automakers, and Tesla's once-dominant market position is slipping. Musk's public image isn't helping either. His political posts and unpredictable behavior are turning off some potential buyers. Tesla's big swing to reignite excitement—the robotaxi—hasn't landed quite right either. The service launched in a limited test in Austin last month, but reports suggest it's still very much a work in progress. Technical hiccups and the need for human safety drivers make it clear that fully autonomous rides are still some distance away. Tesla's energy and charging businesses are bright spots, but they're not yet big enough to carry the company. For now, Tesla needs to prove it can revive its core auto business before its rivals pull too far ahead. The Case for XPeng XPeng may not have Tesla's size or global brand power, but it's quickly earning its place in the EV spotlight. The Chinese EV maker is scaling fast—and smart. It's not just selling more cars; it's building them around intelligence-driven features that appeal to the tech-savvy buyer. Take the new G7, for example—a sleek crossover that fits right between XPeng's G6 and G9 models. But it's not just about filling a lineup gap. The G7 is the first vehicle powered by XPeng's own Turing AI chip, which boasts triple the computing power of typical smart driving chips. That gives it a real edge in self-driving capability. Launched in China, the G7 undercuts Tesla's Model Y by nearly $9,500, and early sales suggest it's a serious competitor. XPeng's delivery numbers are turning heads too. In 2024, it delivered over 190,000 vehicles, up 34% year over year. That growth has exploded in 2025. In just the first quarter of 2025, XPeng delivered 94,008 vehicles—a massive 331% jump from the same period a year ago. The momentum continues. Last month, XPeng delivered 34,611 smart EVs, marking a whopping 224% increase year over year. With that, XPeng's deliveries surpassed the 30,000 mark for the eighth straight month. In the three months ending June 2025, it sold a record 103,181 cars, more than double its second-quarter 2024 levels. The company is innovating fast. From its AI-powered Hawkeye Vision System to its XOS 5.4 operating system, XPEV is all-in on full-stack smart driving. It's even dabbling in futuristic tech like flying cars and humanoid robots. XPeng may still be the underdog, but it is quickly becoming one of the most exciting EV players to watch. How Do Estimates Compare for XPEV & TSLA? The Zacks Consensus Estimate for XPeng's 2025 top and bottom line suggests year-over-year improvement of 102% and 67%, while the 2026 sales and earnings estimate implies a jump of 39% and 207%, respectively, from 2025 projected levels. See how estimates for XPEV have been revised in the past 90 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Tesla's 2025 top and bottom line suggests year-over-year decline of 3.7% and 27%. However, its 2026 sales and earnings estimate implies growth of 18% and 51%, respectively, from 2025 projected levels. See how estimates for TSLA have been revised in the past 90 days. Image Source: Zacks Investment Research Conclusion While Tesla still commands global attention, its momentum is clearly slowing. Falling deliveries, fierce competition, and a shaky start to its robotaxi ambitions have cast a shadow over its growth story. Tesla's downward EPS estimate revisions and its Zacks Rank #4 (Sell) reflect the challenges it is facing. XPeng, in contrast, is gaining speed—delivering record-breaking numbers, showcasing advanced tech, and riding strong tailwinds in China's booming EV market. With positive EPS estimate revisions and solid growth outlook, XPeng is quickly proving it's not just a rising star, but a serious player. XPeng, with a Zacks Rank #2 (Buy), is clearly the more attractive pick in today's EV landscape. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
