XPeng's AI-electric car loses steam

XPeng (9868) fell despite the well-received response to its latest artificial intelligence-electric vehicle, whose starting price was as much as 30 percent cheaper than previously forecasted.

At the 2024 Paris Motor Show, which started on Monday, XPeng said that its latest P7+ model, which the emerging EV maker described as "the world's first AI vehicle," would be sold at 209,800 yuan (HK$229,088) or above.

Just five days ago, XPeng chief executive He Xiaopeng revealed that the P7+ model is positioned as "a coupe sport utility vehicle under 300,000 yuan," which is 30 percent higher than the final minimum price. The starting price is about 6 percent lower than the previous model P7. XPeng announced later that the pre-sale orders had exceeded 30,000 vehicles in less than two hours.

However, XPeng's American depositary receipts plunged nearly 10 percent before the Hong Kong market opened.

Yesterday, XPeng lost 6.8 percent to HK$44.5 apiece in Hong Kong, along with other Chinese EV makers.

XPeng's P7+ model features an "AI-powered perception solution for smart driving," which can be used in every city, route and road condition, the company said.

Themis Qi