The Xpeng G9 SUV is on display during the 20th Shanghai International Automobile Industry Expo at the National Exhibition and Convention Center in Shanghai, April 18, 2023.
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Exping The company plans to hire 4,000 new people and invest in artificial intelligence technology, according to the company's CEO, who warned of intense competition in the electric vehicle space that could end in a “bloodbath.”
He Xiaopeng, CEO of electric car maker Xpeng, said in a letter to employees on Sunday, which CNBC reviewed, that the company will invest a total of 3.5 billion Chinese yuan ($486.2 million) in research and development of artificial intelligence technology. Focus on “intelligent driving.”
Xpeng has a driver assistance system called Xpilot that allows its cars to perform some functions semi-autonomously.
The CEO also said that Xpeng intends to launch about 30 new or upgraded vehicles over the next three years.
This year, the company will launch its first models in the price segment of more than 300,000 yuan and 150,000 yuan.
After a rocky start last year, Xpeng's deliveries are up. Deliveries are the closest approximation of sales for automakers.
Xpeng, like other electric car makers, is locked in a price war in China sparked by Tesla. Meanwhile, the Chinese economy remains under pressure as consumers remain cautious.
Xiaopeng sounded an optimistic tone, saying that the company “has reached the bottom and charted a course that distinguishes itself” from its competitors in the industry.
However, he acknowledged the tough competition ahead.
“This year also marks the beginning of a fierce competition that may end in a bloodbath (or as I prefer to call it, a brutal knockout round) between Chinese automakers,” Xiao Peng wrote in an employee memo.
“XPeng has been engaged in this fierce competition from the beginning, and thus has accumulated great experience. I firmly believe that our courage, determination and perseverance will lead us to victory.”
