The automaker’s full name is Guangzhou Xiaopeng Motors Technology Co. Ltd., and it has a valuation of about $3.65 billion, according to venture capital database CB Insights.
Big Backers
The big backers helped Xpeng get an early start in the electric car race in China, where half of all EVs in the world are sold. China is striving to reshape the auto industry as the world’s biggest market promotes new-energy vehicles in an effort to clean its air and cut its reliance on oil imports. Xpeng’s domestic rivals include established automakers such as Warren Buffett-backed BYD Co. and startup NIO Inc.
Xpeng, which currently contracts production to Haima Automobile Group Co. in Zhengzhou, is ramping up capacity to try to expedite delivery time. The company started deliveries of its G3 electric SUV in December but doesn’t disclose sales.
“Tesla made customers wait for three years to get a car, and Xpeng doesn’t want to do that,” said Linyan Feng, an analyst at Beijing-based technology researcher EqualOcean.
The starting price for a Model 3 in China is about double the price of an Xpeng because of taxes. “Once Tesla has built that factory in Shanghai, I think it would be a huge challenge for Chinese EV makers,” Feng said.
Scale Up
He wants to scale up his research-and-development team this year, adding hundreds of workers with a focus on autonomous driving, artificial intelligence and internet connectivity. His company’s biggest challenge will be educating customers, and that Tesla, which he doesn’t see as a competitor, will play a major role in that.
The tycoon was born in Huangshi in Hubei province, where his father was the chief electrical engineer for a state-owned cement machinery factory. He studied computer science at South China University of Technology before co-founding UCWeb. He cites Xiaomi Corp. Chairman Lei Jun as one of his biggest influences after having invested millions of yuan into the technology company’s initial public offering.
If He can make Xpeng a viable EV maker, he’s promised to treat himself to an exploration vessel that can break ice and explore the seas with small submarines and landing boats. Before starting Xpeng, he studied the possibility of developing floating island settlements.
“I’m always extremely interested in oceans,” said He, who keeps a yacht in Hong Kong. “I can see myself buying a lot of stuff on the sea like boats and equipment."