Chinese Tesla rival Xpeng wants to sell half of its cars overseas

Xpeng CEO He Xiaopeng stands subsequent to the company’s P7 electrical sedan as he addresses media on the 2020 Beijing auto present.

Evelyn Cheng | CNBC

BEIJING — Chinese electrical automobile start-up Xpeng plans to grow to be a world automaker, with half of automobile deliveries going to international locations outdoors China, vp and chairman Brian Gu mentioned Wednesday.

“As a company that focuses on global opportunities, we want to be balanced with our contribution of delivery — half from China, half from outside China — in the long run,” Gu mentioned in an unique interview with CNBC’s Arjun Kharpal on “Squawk Box Asia.”

Gu didn’t present a selected time-frame for reaching that aim.

For comparability, U.S.-based Tesla mentioned within the third quarter that its dwelling market accounted for 46.6% of whole gross sales.

China accounted for 22.6% of Tesla’s total gross sales, up from just below 20% a year in the past. Elon Musk’s automaker opened a manufacturing unit in Shanghai and started delivering domestically made cars simply earlier than the onset of the pandemic in January 2020.

Gu mentioned Guangzhou-based Xpeng would make investments extra in worldwide markets this year and subsequent, and expects to enter Sweden, Denmark and the Netherlands subsequent year.

Xpeng started delivery cars to Norway in December 2020. Other Chinese automakers have targeted their preliminary overseas enlargement on the nation, the place authorities incentives have supported native demand for electrical cars.

U.S.-listed Chinese start-up Nio opened a flagship retailer in Oslo and started native automobile deliveries in September.

BYD, backed by U.S. billionaire Warren Buffett, started delivery electrical cars to Norway this summer time, and goals to ship 1,500 cars there by the top of the year. Last week, BYD mentioned it launched deliveries to the Dominican Republic, following an analogous enlargement to Brazil, Mexico, Colombia, Uruguay, Costa Rica, and the Bahamas in October.

Profitability nonetheless elusive

U.S.-listed Xpeng’s shares rose greater than 8% in a single day after the company reported a beat on income within the third quarter, coming in at 5.72 billion yuan ($887.7 million). That topped expectations of 5.03 billion yuan, in accordance to StreetAccount.

However, the start-up reported a greater-than-expected loss of 1.77 yuan (27 cents) per share, versus expectations of an 1.17 yuan loss, in accordance to StreetAccount.

Gu mentioned Wednesday he expects the automaker can attain breakeven in two years.

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