Mohit Oberoi
Yesterday, Xpeng Motors revealed the specifications and pricing for its flagship SUV G9 which would compete with Tesla Model Y. Can the Chinese EV (electric vehicle) company take on Tesla Model Y with its new SUV?
Xpeng said that there would be three series of G9 and all of them would have different driving ranges. In total, the G9 SUV would have nine specifications for buyers to choose from. The models would start from $44,270 and the top model would cost up to $66,000.
Xpeng Motors said, “G9 is the world’s fastest-charging mass-production SUV and boasts the industry’s first full-scenario Advanced Driver Assistance System. This is topped off with a dual-chamber air suspension system and a luxurious smart cabin that includes a groundbreaking 5D music experience we call Xopera.”
He Xiaopeng, Xpeng Motors’ CEO added, “We believe it will become the new benchmark for smart EVs, representing the last step before the realization of truly autonomous vehicles.”
Notably, earlier this week only, Xpeng Motors debuted a semi-autonomous driving system in China. It has launched the pilot program of its Navigation Guided Pilot (City NGP) for a select group of Xpeng P5 customers in Guangzhou.
Xpeng Motors Stock Fell despite Revealing its G9 SUV
Meanwhile, it seems Wall Street wasn’t too impressed with the G9, and Xpeng Motors stock fell to a new 52-week low yesterday. While the broader market turmoil might also have contributed to the fall, XPEV was trading lower even before the US Federal Reserve announced a 75-basis point rate hike.
NIO stock also tumbled yesterday. Billionaire investor Ray Dalio added more Xpeng Motors shares in the second quarter of 2022. He also bought more NIO shares as well as Ford in the quarter amid the crash. Ford stock crashed earlier this week after the company warned of a $1 billion hit from higher inflation in the third quarter.
Can Xpeng Motors take on Tesla with its Model Y?
G9 is the most expensive car from Xpeng Motors but the company has priced it competitively against Tesla’s Model Y. Most of Tesla’s deliveries comprise of Model 3 and Model Y.
Along with the G9 SUV, Xpeng’s new semi-autonomous driving system would also compete against Tesla’s FSD (full self-driving). Tesla recently increased the price from $12,000 to $15,000. The company’s CEO Elon Musk believes that eventually, FSD price would rise to $100,000.
However, US regulators have been against Tesla using the term “full self-driving” for its semi-autonomous driving system. The NHTSA (National Highway Traffic Safety Administration) is investigating several cases of crashes involving Tesla’s FSD.
Wall Street analysts have been getting bullish on Tesla after President Joe Biden signed the Inflation Reduction Act of 2022 which would restore the EV tax credit for Tesla cars from the next year.
Morgan Stanley advises investors to buy Tesla stock and believes that the Inflation Reduction Act could add $30 billion to the company’s profits by 2030.
EV Race is Heating Up Globally
The EV race is heating up globally as both legacy automakers and pure-play EV companies are ramping up production. Earlier this week, General Motors (NYSE: GM) and Hertz announced a partnership under which Hertz would order up to 175,000 EVs from GM over the next five years.
The deal is the largest such deal in the EV industry and Hertz would order models across Chevrolet, Buick, GMC, Cadillac, and BrightDrop. The deliveries for Chevrolet Bolt EV and Bolt EUV would begin in the first quarter of 2023.
Coming back to Xpeng Motors, the company said that it received 22,000 pre-orders for its G9 in August within 24 hours of starting accepting the orders. However, it remains to be seen if the Model can take on Tesla Model Y with its new SUV.
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This article was written for Business 2 Community by Mohit Oberoi.
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