(Reuters) -Chinese electric vehicle maker Xpeng on Tuesday forecast third-quarter revenue would double, betting on surging deliveries of its cars despite challenging economic conditions.
The Guangzhou, China-based company’s U.S.-listed shares rose over 4%.
Xpeng has been able to drum up demand for its diverse lineup of electric cars, helped by government stimuli to boost customer spending in a faltering economy.
The carmaker is also working on integrating artificial intelligence into its self-driving software and expanding technology tie-ups with other automakers.
“XPeng’s in-house Turing chip, once mass-produced, could be a pivotal step in the company’s intelligent driving ambitions. The chip is designed specifically for XPeng’s own requirements, offering targeted optimization over generic industry solutions,” said Rosalie Chan, an analyst at Third Bridge.
China is now the largest auto market in the world due to the ability of its companies to make and sell vehicles at lower costs than Western automakers.
But that has crowded the market, leading to a price war and a battle for technological supremacy.
Xpeng forecast third-quarter revenue between 19.6 billion yuan ($2.73 billion) and 21 billion yuan, an increase of 94% to 107.9% from a year ago. Analysts on average expect revenue of 20.81 billion yuan, according to data compiled by LSEG.
It expects quarterly deliveries between 113,000 and 118,000, a jump of 142.8% to 153.6%.
For the second quarter, the company reported revenue of 18.27 billion yuan, compared with estimates of 18.52 billion yuan.
($1 = 7.1804 Chinese yuan renminbi)
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Sahal Muhammed)
