XPeng saw a 100 percent increase in new order intake in February compared to January, and orders for the P7i have been strong since its launch, with another significant increase in order intake in March compared to February. | XPeng US | XPeng HK
XPeng (NYSE: XPEV) today announced its fourth-quarter earnings results and subsequently held a conference call with analysts.
Below are the key highlights of the call.
Through drastic organizational optimization, XPeng's strategic and organizational adjustments have achieved significant results in the first quarter.
Currently, all XPeng R&D, production and supply chain systems report directly to He Xiaopeng, and president Wang Fengying has taken full responsibility for product planning, sales and service systems.
In the next two years, XPeng will further strengthen the network layout and improve the effectiveness of sales staff by flattening the management of the sales network.
In the future in product planning and design, XPeng will innovate more around user-perceivable value and differentiation, with great changes in subsequent model configuration combinations, overall vehicle modular design and intelligence consistency.
Currently, Mr. He himself has directly managed the styling team and created three styling front-end teams for creative competition, which will significantly improve the styling, space and other design performance of XPeng's future models.
Amid the market's prevailing weakness in new order intake, XPeng's results outperformed the market. Its new order intake in February increased 100 percent over the previous month.
Along with the strong order performance after the launch of the P7i, XPeng saw another significant increase in orders in March compared to February.
The XPeng G6 will be unveiled at the Shanghai auto show and will be officially launched and delivered around the end of the second quarter with a price range of RMB 200,000 ($29,050) - 300,000.
The company's monthly sales target for the G6 is 2-3 times that of the P7.
The G6 will have a significantly improved range that will exceed imagination and will have much more interior space than similar products from competitors.
The monthly sales of XPeng in the second half of this year will have several times more room for improvement than the level at the beginning of the year.
XPeng will launch a new pure EV model in the second half of the year, which will be a 7-seat MPV.
XPeng has developed a clear roadmap, through technological innovation, configuration optimization and other means, the cost of autonomous driving is expected to drop by more than 50 percent between this year and next year, and the cost of vehicle hardware, including power systems, will drop by 25 percent.
XPeng has almost completed its investment in two production sites and capital expenditures will drop significantly.
In the next two years, XPeng will target the smart, power and vehicle segments, following a clear path to reduce costs.
The company will move from selling hardware and software as a whole to selling hardware and software separately, making fully autonomous driving a standard feature.
The artificial intelligence represented by GPT has a huge future. It will have a new interpretation of how autonomous driving can be implemented and will enable L4 autonomous driving to move to L5 much faster.
XPeng expects more coupling between GPT-related technologies and various parts of the company's business.
XPeng's City NGP will be available in Guangzhou, Shenzhen and Shanghai, and will cover more models.
Later this year, XNGP based on XNET's deep learning algorithm will no longer rely on high precision maps, thus achieving coverage of a wide range of urban roads in multiple cities nationwide.
From the test results, XPeng's new version of XNGP will significantly outperform its competitors' actual use in the US.
XPeng will insist on investing to push the technology route and commercialization across the inflection point and into the explosive period, and promote the realization of large-scale commercialization of autonomous driving technology.
XPeng Q4 revenue misses estimates, gross margin falls to single digit