XPeng CEO Buys 2.2 Million Company Shares
XPeng Motors announced on the evening of September 25 that its chairman and CEO, He Xiaopeng, bought 2.2 million company shares in the open market on September 23, for an average price of $13.58 each and resulting in an overall increase of $29.876 million. Upon completion of the move, the entrepreneur holds approximately 20.5% of the total issued shares of the company.
In addition, the announcement stated that the company board considered the acquisition to be an indication of He Xiaopeng’s confidence in the company’s prospects, growth potential and his long-term commitment. On September 26, XPeng Motors shares rose 3.79% to HK$53.45, with a total value of HK$92 billion ($11.7 billion).
According to the firm’s data, XPeng Motors sold 9,578 vehicles in August 2022, representing a year-on-year increase of 33%. Among them, XPeng P7 delivered 5,745 units, XPeng P5 delivered 2,678 units and XPeng G3 series delivered 1,155 units. From January to August this year, the firm delivered more than 90,000 units, nearly doubling that of the corresponding period of last year.
It is worth mentioning that on September 23, XPeng Motors made an emergency adjustment to the naming and configuration of the G9, its new flagship model launched two days before. The firm has directly made features with a high selection rate as standard configuration. In response, the firm explained that it was due to the fact that many users reported that the product choices were too complicated and that the selection cost was too high.
The price was suddenly adjusted two days after its release. XPeng‘s move has no precedent in the auto industry. However, as the new car has not yet been delivered, the configuration is being adjusted before delivery with many features added. This approach has not caused dissatisfaction among booked consumers. Instead, the firm’s favorable attitude has attracted praise from car owners.
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According to industry analysts, the purpose of the move may be to improve the price/performance ratio of the G9, so as to attract more consumers. The G9, as a model targeting the high-end market, bears a heavy sales task. At the beginning of this year, the firm announced that its sales target for 2022 is to ensure 250,000 vehicles and hit 300,000 vehicles. Within this, the sales volume of the G9 is aimed to account for about 14%, with an estimated 35,000 vehicles. Given that the G9’s delivery starts from October, the model will need to deliver over 11,000 vehicles per month on average to reach the goal.
At present, the best-selling model made by XPeng Motors is the P7, which is priced between 200,000 yuan and 300,000 yuan ($27,916 – $41,874). It has not sold more than 10,000 units in a single month. However, in the 300,000 yuan to 400,000 yuan pure electric SUV market, where the G9 is positioned, there are many strong competitors, such as NIO‘s ES7, Li Auto‘s L9, and Huawei-backed Avatr 11. It is completely unknown how much market share XPeng Motor’s G9 can seize in the competition.