Chinese Tesla-wannabe flaunts speed and control - Reuters

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An XPeng Inc. P7 performance electric vehicle is seen outside the New York Stock Exchange (NYSE) ahead of the Chinese company's IPO trading under the stock symbol "XPEV" in New York, August 27, 2020. REUTERS/Mike Segar

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HONG KONG, Nov 24 (Reuters Breakingviews) - Electric-car maker Xpeng (9868.HK) is showing off some impressive financial roadworthiness. It tripled sales to 25,666 units in the three months to the end of September, compared to a year earlier. That revved up revenue by 187%, despite supply-chain snarls. That’s impressive, but so are the figures further down the release on Tuesday.

The company run by He Xiaopeng boosted the top line without a commensurate acceleration in general expenses, which rose less than 30%. Rival Nio’s (NIO.N) spending on admin and the like almost doubled in the quarter to fuel its 117% sales growth, despite cost controls. At the same time, Xpeng is keeping the pedal to the metal for research and development, splurging twice as much as last year. That supports a commitment to staying ahead in autonomous driving. read more

Even after a more than 8% jump on the results, its shares trade at 4.2 times forecast sales, cheaper than Nio and Li Auto (2015.HK), according to Refinitiv. Investors could be in for a fun ride. (By Katrina Hamlin)

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Editing by Antony Currie and Thomas Shum

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

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