Shares of NIO Inc. NOK fall on Wednesday due to strong trading volume due to rival EV company Xpeng XPEV missing estimates for the first quarter and reporting a weak outlook for the next quarter.

What you should know: XPeng reported quarterly losses of 37 cents per share, which missed value Analyst consensus estimate for losses of 26 cents a share, down 42.31%. This is a decrease of 32.14% compared to the same period last year.

The company reported quarterly revenue of $587.31 million, falling 20.75% short of analysts’ consensus estimate of $741.07 million. That’s down 50.06% from revenue of $1.18 billion for the same period last year.

XPeng expects revenue of $657.7 million to $686.9 million for the second quarter. Deliveries are expected to be between 21,000 and 22,000 vehicles, down 36.1% to 39% year over year.

He XiaopengXPeng Chairman and CEO, tempered the news with optimistic views on his decisions and their impact on the company’s future, saying, “During the first quarter of 2023, I took action to make changes to our strategy, organizational structure and leadership team. “I am absolutely confident that over the next few quarters we will put our business into a virtuous cycle that drives product sales growth, team morale, customer satisfaction and brand reputation.”

He then touted the G6, the first production model built on Xpeng’s next-generation SEPA2.0 technology architecture, which is expected to launch in June 2023.

Nio held its ES6 launch event on Wednesday.

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NOK price action: NIO Stocks were down 9.66% at $7.91 at the time of publication Gasoline Pro.

Photo: courtesy of Nio.