- XPeng’s CEO said he is aiming for level three autonomy, likening it to an “iPhone 4 moment” for cars.
- He said that true success would be his parents’ generation using self-driving comfortably.
- Despite revenue growth, XPeng remains unprofitable and is aiming to break even this year.
XPeng’s CEO said that autonomous driving’s “true success” is seeing a wide range of users, including his parents’ generation, use such cars comfortably.
“We are actually in a new generation of technology advancement. And I believe that this is going to trigger a wider adoption of smart driving for the whole society,” XPeng’s CEO, He Xiaopeng, said on Tuesday’s earnings call. “All consumers will become more and more interested in understanding what smart driving is.”
Xiaopeng said level three autonomy and strong user demand and loyalty would mark an “iPhone 4 moment for AI-defined cars.” Level three autonomy refers to the stage of self-driving in which a car can detect its environment and perform most tasks — but it still requires human override for emergencies or unfamiliar situations.
The electric vehicle maker’s CEO added that in the second half of this year, his company plans to be the first in China to sell cars with level three self-driving level. He said XPeng and Tesla are the only carmakers worldwide capable of providing a smart driving experience without high-definition maps or light detection.
XPeng’s deliveries grew 52% to 91,507 vehicles in the fourth quarter, compared with the same period a year ago. Tesla delivered 495,570 cars during the same period.
XPeng reported 16.11 billion yuan, or $2.23 billion, in fourth-quarter revenue, up 23.4% year-over-year.
The company’s recent success has been driven by new model launches, demand for its AI-powered vehicles, aggressive international expansion targets, and focus on the premium EV segment — which Gu defines as cars costing more than $41,000.
Still, the Chinese EV maker has never turned a profit. It reported a loss of 1.33 billion yuan in the fourth quarter.
In November, the company’s president, Brian Gu, said the company may reach a break-even point toward the end of 2025. The milestone would make XPeng the first Chinese carmaker to turn profitable based on EV sales. Larger rivals like BYD are profitable but rely on sales of hybrid cars.
Amid raging competition from Chinese carmakers, XPeng has focused on international expansions. In recent months, it launched in the UK, France, Germany, and Italy and said last month that it planned to expand its footprint to more than 60 countries and regions by the end of the year.
On Tuesday, Xiaopeng said he anticipated that the company’s international sales will nearly double this year. He added that by 2034, he expects an even split between sales coming from China and sales from overseas markets.
XPeng’s stock fell close to 6% in Hong Kong on Wednesday. It is up 91% so far this year.
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