XPeng Inc. is reportedly set to launch a lower-priced brand of electric vehicles (EVs) amid stiff competition in China.
Chief Executive Officer He Xiaopeng is said to have told an industry event in China over the weekend that the new EVs would cost between $13,893 and $20,839.
XPeng is also apparently preparing to put out an artificial intelligence (AI) model.
American depositary receipts (ADRs)
of XPeng Inc. (
XPEV
) rose Monday after the Chinese electric vehicle (EV) manufacturer announced it would be launching a lower-priced brand as it faces stiff competition in China.
According to reports, CEO He Xiaopeng told an industry conference in China over the weekend the company would be launching the so-far-unnamed brand targeted to the mass market within the next month. Prices for the EVs would range from 100,000 yuan ($13,893) to 150,000 yuan ($20,839).
XPeng’s current models cost between CNY200,000 ($27,785) and CNY300,000 ($41,678).
Earlier this month, Tesla Inc. (
TSLA
) announced
new incentives for some models in China
to boost demand as the company works to compete with Chinese EV makers like BYD Co. (
BYDDY
).
The new XPeng models would be for both Chinese and international consumers. He is quoted as saying the lower price “has great market potential.”
Separately, XPeng is said to have plans to introduce an
artificial intelligence (AI
) vehicle to its lineup. The company also reportedly will spend CNY3.5 billion ($486 million) on AI research and development, as well as hire 4,000 more workers this year.
ADRs of XPeng were up 2% at $9.85 as of 12:20 p.m. ET Monday but have lost nearly 30% of their value so far this year.
