XPeng Motors (NYSE: XPEV, HKG: 9868) today announced its first-quarter financial results and subsequently held a conference call.
The following are the key highlights of the call.
XPeng began to introduce more battery suppliers in 2021, and basically completed the layout of diversified battery supply in the second quarter of this year, reducing the risk of concentration of suppliers in specific regions.
The chip supply chain challenge is taking longer than one might think. XPeng began building strong embedded system hardware and underlying software for deep in-house development in steps in 2015, and this part of self-research began to enter the stage of generating scale benefits in 2022.
XPeng resumed double-shift production at the Zhaoqing plant in mid-May and will accelerate deliveries to meet customer demand.
XPeng's new orders in March hit a record high, and the order backlog reached an all-time high.
To cover the rising cost of batteries and raw materials, XPeng raised the price of its entire product line by RMB10,000-20,000 on March 21. However, the demand after the price increase still shows strong resilience, and if we exclude some regions affected by the epidemic, the order volume in May has returned to a level comparable to that before the price increase.
XPeng will deeply integrate areas including smart cockpit, smart chassis, and powertrain, which will enhance the experience and reduce costs.
XPeng plans to launch the G9 in the third quarter with mass deliveries in the fourth quarter, expecting the model to become a hot seller for mid-size electric SUVs.
XPeng plans to launch two new models in 2023, based on the new B- and C-class platforms.
New model launches will structurally improve gross margins, and XPeng's medium- to long-term goal is to increase overall gross margins to more than 25 percent.
XPeng plans to begin mass deployment of 480 kW next-generation supercharging piles in the fourth quarter, resulting in a significantly enhanced charging experience with a 200 km range on a 5-minute charge.
In addition to the 480-kW supercharging pile, XPeng is designing the next generation of supercharging systems with faster charging rates.