Chinese EV company Xpeng shares surge 13% after forecasting growth in car deliveries

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Chinese electric car company Xpeng saw its shares soar after reporting an improvement in profit margin and an upbeat outlook for second-quarter deliveries.

Xpeng reported that vehicle margin rose 5.5% in the first three months of the year, from a negative 2.5% in the prior quarter. Vehicle margin is a measure of profitability.

Xpeng reported that vehicle margin rose 5.5% in the first three months of the year, from a negative 2.5% in the prior quarter. Vehicle margin is a measure of profitability — the higher the margin, the greater the profit the company is making on its car sales. "Meanwhile, considering the intensifying competition in the overall market, that renders smaller players more vulnerable, we remain slightly cautious and suggest investors to closely monitor the new model to be launched under the MONA brand next month," the Nomura analysts said.The first Mona car — an electric sedan below 200,000 yuan — is set for release in June and scheduled to begin mass deliveries in the third quarter, according to the company.

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