On May 21, XPeng (XPEV.N) shares commenced the U.S. trading session with a stunning surge of over 12%. The company announced on Wednesday that a substantial increase in vehicle deliveries and a record-breaking gross margin in the first quarter contributed to a significant narrowing of adjusted (Non-GAAP) net losses on a year-over-year basis. The financial report revealed that revenue for the quarter amounted to RMB 15.81 billion, marking a robust 141.5% year-over-year growth. The gross margin stood at 15.6%, an improvement of nearly 3 percentage points from the previous year and surpassing analysts' expectations. Furthermore, XPeng anticipates a minimum 2.4-fold increase in deliveries year-over-year for the second quarter.

XPeng Chairman He Xiaopeng expressed confidence in the company's ability to achieve its ambitious goal of more than doubling sales this year. He also forecasted profitability in the fourth quarter, signaling a positive turnaround for the company's full-year free cash flow.