HK Stock Market Move | XPENG-W (09868) dropped over 3%, with July delivery volume decreasing by 5.23% month-on-month. Citibank estimates its second-quarter Non-GAAP net loss to be around 1 billion yuan.

XPENG-W (09868) fell over 3%, and as of the time of writing, it is down 3.28% at HKD 48.94, with a trading volume of HKD 404 million. In news, XPeng Motors delivered 38,027 vehicles in July, a year-on-year increase of 4%, but a month-on-month decline of 5.23%. Citigroup released a research report forecasting that XPeng will have a non-GAAP net loss of about RMB 1 billion in the second quarter, with a consolidated gross margin of about 20% and an automotive gross margin of about 12.5%. The bank expects XPeng's total deliveries in the third quarter to be around 130,000 units, below the market expectation of 150,000 units, mainly due to July's deliveries possibly falling short of expectations, along with the time needed for the L03 production ramp-up, and the L03 (with a gross margin exceeding 10%) potentially encroaching on the sales of the M03 (which has a single-digit gross margin).