Internal letter from XPeng CEO details 2025 goals, warns of an impending EV ‘price war’
As we bid adieu to 2024, XPeng founder and CEO He Xiaopeng is setting the stage for a big 2025. The EV executive posted an internal letter to XPeng staff outlining the company’s key goals for the upcoming year, imploring all to prepare for fiercer competition in the EV segment and even predicted a price war on the immediate horizon.
During the last hours of 2024, XPeng Motors ($XPEV) operates as one of the EV leaders in China. We at Electrek have covered much of the automaker’s rise to prominence, especially as it has expanded the availability of its EV lineup to global markets like Europe.
XPeng’s portfolio currently consists of seven all-electric models, including the new MONA M03 launched in 2024. Additionally, the company has established its own network of EV chargers and proprietary autonomous driving technology. It also has a business arm dedicated to aerial eVTOL travel, including a flying car prototype.
In 2025, XPeng Motors looks to continue to build on the momentum it has garnered in recent years. However, the company’s founder and CEO relayed that there is still room for improvement for the automaker to remain competitive and, in many ways, lead the industry in China.
XPeng starts 2025 to become #1 overseas
Many businesses may be slowing down and shuttering for a few days to ring in 2025, but XPeng founder and CEO He Xiaopeng remains dialed in. The CEO recently shared an internal letter with the XPeng staff, obtained by the Chinese media outlet CnEVPost.
In the letter, Xiaopeng outlined the company goals for the coming year as well as long term targets to continue global growth in hopes of becoming a household name in EVs. To get there, the XPeng founder said the company must be resilient as he predicts China’s EV industry will enter an elimination phase between 2025 and 2027. As such, he’s warned his staff to prepare for fiercer competition next year, going as far as stating a bold prediction. Per the internal letter:
The market will definitely see fiercer competition in 2025, and I can even make a bold prediction that price war will ignite from January.
Innovation and efficiency will be core tenets of XPeng’s strategy in the future to remain a leader in EVs in 2025 and beyond. Xiaopeng told staff that vehicle companies that lack innovative technology and core competencies, such as comprehensive R&D and marketing capabilities, will miss their opportunity for sustained growth. This could lead to a fading into irrelevance, as warned by Xiaopeng, over the next three years since the Chinese EV market is so saturated.
New Energy Vehicle (NEV) adoption continues to soar overseas, but an influx of similar EV styles and configurations will trigger even more competition and the vital need to stand out. Here are some additional goals for 2025 outlined by the XPeng CEO in the letter:
- Over the next three years, XPeng needs to improve its “systemization capabilities.
- The company must increase its capabilities’ upper limit through systemic innovation, acquire more comprehensive capabilities in the lower limit, and achieve a balance.
- In the next 10 years, Xiaopeng wants to become a leading global AI car company in products, business, organization, and globalization.
- The company plans to launch a new or facelifted model nearly every quarter in 2025.
- Expand hiring to over 6,000 new employees next year.
- XPeng 2025 will be the year XPeng’s internationalization strategy will be fully accelerated.
- Xpeng has already entered 30 countries and regions but intends to exceed 60 by the end of 2025.
While China is its home and most prominent market, XPeng’s CEO sees bigger plans for the brand on a global level. The 2025 goal to “fully accelerate” internationalization is step one in Xiaopeng’s strategy to achieve half of the company sales coming from overseas while becoming the number 1 Chinese mid-to-high-end NEV brand in sales share within the next ten years.
He Xiaopeng told staff that global expansion requires close collaboration between international and domestic colleagues in all departments to achieve said goals. In the letter, Xiaopoeng called XPeng’s strengths in unique products and adjacent technologies “ammunitions” that, when organized more systematically, will get XPeng through the 2025 elimination round and into China’s qualifying round.
All eyes are on 2025 as XPeng remains one of the key Chinese automakers to watch.
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Kia’s electric sports car will smoke a Ferrari and Lamborghini off the line, and it’s already less than half the cost. Now, Kia’s 576 horsepower EV6 GT is even cheaper to drive with nearly $20,000 in lease savings. Here’s how you can get your hands on one.
The EV6 GT arrived in 2022 as the “most powerful Kia production vehicle ever.” With up to 576 horsepower, Kia’s electric sports car can sprint from 0 to 60 mph in just 3.4 seconds.
Kia went all out, adding fun features and different drive modes, such as “GT” and “drift.” The GT drive mode adjusts the vehicle’s motor, brakes, steering, suspension, and more for better performance.
To prove its power, Kia put its EV sports car up against a Ferrari Roma and Lamborghini Huracan EVO Spyder. Certified by an independent test from AMCI, the Kia EV6 GT beat both off the line. Not only is the Kia faster, but it’s also about half the cost.
The 2024 Kia EV6 GT starts at $61,600. A 2024 Ferrari Roma will run you about $245,000, while a new 2024 Lamborghini Huracan EVO Spyder starts at just over $300,000.
According to online car research firm CarsDirect, the 2024 Kia EV6 GT now features $19,050 in lease cash (24-month lease). With the option of Single Pay leases, you can also score lower lease rates.
If you’re looking for something with a little less performance (and a lower price), Kia is offering $10,000 in Customer Cash on all 2024 EV6 models. The EV6 Light Long Range RWD ($45,950 MSRP) is listed for lease at just $179 for 24 months, with $3,499 due upfront.
The discounts come with the new 2025 model year arriving, which has an even longer driving range (319 miles Kia-est) and an NACS port for charging at Tesla Superchargers. The new EV6 GT trim will also pull additional features from Hyundai’s IONIQ 5 N, including a Virtual Gear Shift (VGS) function.
Want to get behind the wheel of Kia’s electric sports car and test it out for yourself? You can use our link to find the best deals on the 2024 Kia EV6 (including the GT model) near you.
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Environment
India’s oil minister says ‘we play by the rules,’ as markets weigh U.S. energy sanctions
India will cooperate with international sanctions, the country’s oil minister told CNBC on Tuesday, as markets eye future U.S. policy under the new administration of President Donald Trump.
“We play by the rules. If there is an international sanction, which is anchored, we would not want to go around it or anything,” India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri told CNBC’s Sri Jegarajah on the sidelines of the annual India Energy Week conference.
“On Russia, yes, there was a price cap, and we adhered strictly to the price cap. Going forward, if there are issues, we will address them.”
India’s refiners have been snapping up discounted Russian oil since Western and G7 energy sanctions barred many consumers from Moscow’s supplies, in an effort to whittle down Russia’s war coffers after its invasion of Ukraine. Countries not subject to the measures have been able to use insurance and shipping providers to facilitate the acquisition and transport of Russian crude procured under a price threshold.
New Delhi has repeatedly defended its purchases as a matter of national interest.
“There is no sanctioned country, first of all. It’s a lot of misrepresentation that’s taking place. Today, Europe still buys 25% of its gas from Russia. They buy other critical energy from there. So there’s no sanction,” the energy minister said Tuesday.
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He also signaled that the government of Trump’s predecessor, President Joe Biden, had endorsed India’s bolstered intake of Russian oil.
“I’ve had a chat with the Americans, the previous administration. They said, please buy as much as you like. Just make sure that you buy it within the price cap. And that’s what we did,” Puri said. CNBC has reached out to the U.S. State Department for comment.
India met about 88% of its oil needs via imports between April and November 2024, little changed from a year earlier, official data showed. As of January, about 40% of those imports came from Russia, data from trade intelligence firm Kpler suggests.
In 2021, Russian oil accounted for just 12% of the country’s oil imports by volume. By 2024, that share had surged to over 37%, according to Kpler data.
Sanctions in focus
The U.S. has been key in shaping global energy policy through sanctions over the past decade. In January, the U.S. imposed sweeping measures targeting Russia’s energy firms and the operators of vessels transporting oil — a move that analysts believe will make it harder for buyers like India to continue importing cheap Russian crude.
Investors have been waiting to see whether the newly installed Trump will pursue a ramp-up or relaxation of U.S. energy restrictions — critical to markets because the U.S. dollar denominates crude and oil product commodities.
Trump imposed sanctions affecting the Iranian and Venezuelan energy sectors during his first mandate and has taken an “America First” approach that could further incentivize domestic output — amid questions over the impact that threatened U.S. tariffs could have on global supply elsewhere.
Puri signaled his country would not be adverse to additional acquisitions of U.S. volumes. “If Americans are putting in more energy onto the global market, somebody asked me: ‘Are you going to buy more? I said: ‘I’d be surprised if we don’t.’ Because it’s in the natural flow,” he added.
The sanctions and trade developments are coinciding with a period when India’s oil consumption growth has outpaced that of China, contributing to 25% of the global increase in oil consumption.
“I am convinced that geopolitical tensions need to be managed,” Puri said Tuesday, noting current characterizations of supply-demand fundamentals in the oil market are “depending on whom you’re talking to and depending on where they stand on the equation,” as producers or consumers.
“A country like India, with a robust demand and a current consumption of 5.5 million barrels [per day] has a contribution to make in terms of which way the market goes. And we… we plan to use that leverage,” the oil minister added.
US EV prices held steady in January, and incentive spending dropped 3.1% from December, according to the latest monthly new-vehicle average transaction price (ATP) report from Cox Automotive’s Kelley Blue Book.
Average transaction prices for EVs in January, at $55,614, were higher by nearly 1% compared to a downwardly revised December. EV prices last month were lower year-over-year by 1.4%. Incentive spending on EVs in January decreased by 3.1% compared to December but was higher by 48.6% year-over-year.
Overall, EV costs are falling – compared to the overall auto industry, EV ATPs were higher by 14.3%. A year ago, the price premium versus the industry was 17.4%.
ATPs for market leader Tesla, at $55,380, were higher year-over-year by 4.5%. Cybertruck prices fell year-over-year by 6.5% to just under $98,000. Model X prices were also lower year-over-year.
The two most popular EVs in the US, the Model Y and Model 3, both saw transaction prices increase year-over-year by 2.2% and 6.2%, respectively.
The $7,500 tax credit is now missing from the Tesla website. What will Tesla’s February sales volume look like?
As for total new-vehicle sales volume in January, it was higher year-over-year by 5.1% but lower by more than 25% compared to a robust December. New-vehicle inventory at the beginning of January was below 3 million units for the first time since late October.
Read more: In December, EV sales were still up and incentives were still sweet – Kelley Blue Book
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