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Chinese Tesla-wannabe flaunts speed and control

HONG KONG, Nov 24 (Reuters Breakingviews) – Electric-car maker Xpeng (9868.HK) is displaying off some spectacular monetary roadworthiness. It tripled gross sales to 25,666 items within the three months to the tip of September, in comparison with a 12 months earlier. That revved up income by 187%, regardless of supply-chain snarls. That’s spectacular, however so are the figures additional down the release on Tuesday.

The firm run by He Xiaopeng boosted the highest line with no commensurate acceleration on the whole bills, which rose lower than 30%. Rival Nio’s (NIO.N) spending on admin and the like almost doubled within the quarter to gas its 117% gross sales progress, regardless of price controls. At the identical time, Xpeng is retaining the pedal to the steel for analysis and growth, splurging twice as a lot as final 12 months. That helps a dedication to staying forward in autonomous driving. learn extra

Even after a greater than 8% soar on the outcomes, its shares commerce at 4.2 instances forecast gross sales, cheaper than Nio and Li Auto (2015.HK), in response to Refinitiv. Investors might be in for a enjoyable journey. (By Katrina Hamlin)

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Editing by Antony Currie and Thomas Shum

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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

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