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Competition in the electric vehicle market is like a high-speed race for dominance, and XPeng (NYSE:XPEV) has announced a bold plan to ensure it stays ahead. CEO He Xiaopeng revealed in a letter to staff that the company will hire 4,000 new employees and invest 3.5B yuan ($486.28M) in AI research and development. He’s electrifying message came on the first working day after the Lunar New Year holiday – a fitting moment to rev up the engines for the battle ahead.
Furthermore, XPeng, backed by automotive giant Volkswagen (OTCPK:VWAGY), intends to release approximately 30 new products or updated models over the next three years, showcasing the company’s unyielding commitment to innovation and adaptation.
Announcing 2024 as the “sea of blood” competition year – the anticipated “knockout round” for Chinese car brands – He emphasizes the need for XPeng to proactively position itself for this battleground. He discerns an opportunity in the midst of a “pessimistic” macroeconomic climate, depicting a vivid picture of the challenges and rewards that await the company.
In a rallying cry, He declared, “In 2024, we will defy the odds and steer into a high-speed positive cycle in Q4 or even earlier.” XPeng’s bold expansion plans are in stark contrast to the cost-cutting efforts of its competitors, who are struggling to cope with weak demand in China.
“This year is XPeng’s 10th year,” He remarked, stressing the need for the company’s performance to more than double and its operations to transition towards high quality – a testament to XPeng’s unwavering determination and ambition.
Looking to the future, XPeng is targeting to double its sales to 280,000 units in 2024, a daring goal given the company has yet to achieve profitability. As the battle heats up, XPeng’s stock saw a 1.6% decline in its Hong Kong-listed shares on Monday, mirroring broader market losses with the Hang Seng Index down 1.1%
