China's Tesla Challenger Xpeng Inc. Reports Record Q4 Sales and Monthly Deliveries for December
Chinese electric vehicle startup and Tesla challenger Xpeng Inc. (Xpeng) reported record sales for the month of December and record fourth quarter sales to close out 2020.
Xpeng said it achieved a record monthly delivery of 5,700 vehicles in December, including 3,691 units of the company's new flagship P7 Smart Sedan. The company's December deliveries included 2,009 G3 SUVs.
The record sales represent a 326% increase year-over-year and a 35% increase from November, according to Xpeng.
In total, Xpeng said it delivered 12,964 electric vehicles in the fourth quarter of 2020, representing a 303% increase year-over-year and 51% increase from the third quarter of 2020, its first quarter as a publicly traded company. In the fourth quarter of 2020, Xpeng said it delivered 8,527 P7 Smart Sedans.
Total deliveries for the year ended December 31, 2020, reached 27,041 units, representing a 112% increase year-over-year. Cumulative P7 deliveries for 2020 were 15,062 vehicles, which was only sold in the second half of the year. The first P7 sedans were delivered to customers in June.
Xpeng delivered a total of 11,979 G3 SUVs in 2020. The fully-electric G3 was the company's first vehicle. It launched in Dec. 2018.
The Xpeng G3 fully-electric SUV.
Xpeng is a publicly traded company in the U.S., launching its IPO in August. The company's shares are listed on the NYSE under the stock symbol "XPEV". Xpeng is also backed by China's e-commerce giant Alibaba.
Xpeng, which was founded in 2014, is emerging as a strong competitor to Tesla in its home country with more affordable electric vehicles. Instead of targeting more affluent consumers like Tesla, Xpeng is targeting younger, more tech-savvy buyers with its advanced vehicle technology. This group of buyers represents over 30% of new car buyers in China, according to IHS Markit.
Xpeng's G3 SUV and P7 smart sedan come packed with connected technology. This segment of buyers also includes those more likely to purchase an purely electric vehicle.
The P7 sedan costs less than half the price of its closest competitor—the Tesla Model S. Xpeng says it's offering the same level of technology, connectivity features and performance for around $50,000 less than the Model S. The P7 features an all-wheel-drive setup with dual electric motors reaching 0-60 mph in 4 seconds.
Xpeng's P7 also achieves an NEDC Range of 439 Miles, the longest range of all EVs sold in China, according to the company.
Xpeng attributes its record December and the fourth quarter delivery numbers to its increasing brand awareness, expanded sales and marketing and expanding its charging network in China.
In September, the company announced a new battery leasing option. Xpeng's battery leasing plan is intended to lower the cost of purchasing an electric vehicle by not charging the customer for the price of the battery up front. An EV battery pack is a significant percentage of an electric vehicle's cost, adding thousands of dollars to the sticker price.
Instead of purchasing the battery with the vehicle, customers can pay a "battery usage fee" in 84 monthly installments. After 7 years, the consumer can take full ownership of the battery pack.
For example, customers in China can purchase Xpeng's G3 SUV without the battery for 122,800 RMB (US$17,966) instead of the 162,800 RMB (US$23,747). The battery leasing option costs an additional 780 yuan (US$114) per month for an optional, longer range battery pack.
In September, Xpeng exported its first batch of vehicles to Norway, expanding its global presence. It's the first time the company is selling its electric vehicles outside of China.
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