Xpeng Inc (NYSE:XPEV) shares accelerated 8% ahead of Tuesday’s open after it unveiled narrower losses, increased deliveries and a jump in profit margins for the first quarter.
Total deliveries over the three months to March sat at 21,821, the Chinese electric vehicle firm reported on Tuesday, representing a 19.7% increase on a year earlier.
Revenue climbed by 62% to 6.55 billion Yuan (US$0.91 billion) on the back of the increase, aiding a 42% fall in net losses to 1.37 billion Yuan.
Xpeng co-president Brian Hongdi Gu said the results came “despite fierce market competition”.
Profit margins increased to 12.9%, from 1.7% a year earlier and 6.2% in the fourth quarter, he pointed out.
“This signifies that Xpeng, based on its smart EV business, has developed a unique approach to lift its profitability and international market potential by providing smart technologies.”
Xpeng noted it had taken a market-leading position in mass production of artificial intelligence-based models for automobiles.
“We are confident that we can launch competitive models globally in a more efficient manner and thus spearhead the widespread adoption of AI-powered smart cars,” chief executive Xiaopeng He said.
This includes through a partnership with Volkswagen Group (XETRA:VOW), which he said would drive market influence.
Shares climbed 8% to US$8.94 in pre-market trading.