Cathie Wood-Backed Chinese EV Maker Xpeng Reportedly Sees Executive Departures

Zinger Key Points
  • Executives overseeing Xpeng' s international operations have reportedly quit.
  • The company's sales in Norway, its first international stop, hasn't been very encouraging.

Xpeng Inc - ADR's XPEV international expansion plans that were proceeding at a fairly rapid pace could face a setback if reports are to be believed.

What Happened: He Liyang, who served as vice president overseeing international operations, has recently departed, CnEVPost reported citing local media outlet LatePost. Liyang reportedly joined the company in early 2021.

His role will now be handled by Jin Bin, vice president of human resources.

Two of Liyang's colleagues, including a vice president responsible for overseas marketing and a senior director of sales, have also quit recently, the report said.

Xpeng views the uptake of its vehicle lineups in Europe as sluggish and it plans to prioritize deliveries of its upcoming G9 model to Chinese customers due to supply constraints, it added.

The LatePost report also noted restructuring that has happened at Xpeng's internet center and layoffs at its data intelligence center.

When contacted by Benzinga, an Xpeng spokesperson did not attach much significance to the report.

"Xpeng is fully committed to its strategy, technology roadmap and robust growth plans and is embracing the current challenging market conditions. We are not commenting on market speculations," she replied.

Related Link: Cathie Wood-Backed Xpeng's Loss Per Share Narrows In Q1; Stock Falls On Downbeat Outlook

Why It's Important: Xpeng was fairly resilient to external risks, including the original COVID-19 outbreak in 2020, and fared relatively better than its Chinese peers Nio Inc - ADR NIO and Li Auto IncLI.

The COVID-19 resurgence since early this year and the subsequent lockdowns have disrupted the company's business. The effect was there for all to see when it reported deliveries for the month of April.

Notwithstanding the vast potential offered by the domestic EV market, Chinese players have increasingly turned their attention overseas. Xpeng began selling vehicles in Norway in late 2020. It has also begun operating in the Netherlands and Sweden by forging strategic partnerships with local automobile dealers and distributors.

XPEV Price Action: Shares were up 1.77% at $22.47 Friday morning, according to Benzinga Pro data.

Photo: Courtesy Xpeng

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