Xpeng better than Nio? It really isn't that simple. Is XPEV another Tesla of China?
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 Published On Nov 8, 2020

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Xpeng was actually founded in 2014 after Tesla opened up its patents to public use and before He Xiaopeng came on board although He Xiaopeng was one of the original backers along with Lei Jun the founder of Xiaomi. Lei Jun is also a major backer of Nio through Shunwei Capital which he is one of the founders.

In 2017 Xiaoping left Jack Ma’s Alibaba Group and officially joined Xpeng Motors as one of the co-founders.
He must have left Alibaba on good terms because he was eventually able to secure a boat load of cash from Alibaba in a third round of funding.
In fact, Xpeng has a lot of support from multinational corporations, institutional investors and local governments.
Among their backers are the Alibaba Group, Xiaomi, the Qatar sovereign wealth fund, The Abu Dhabi sovereign wealth fund, Foxocnn, IDG Capital, Hill House Capital and Sequoia Capital of China. And they have significant local government support.

But just having these Business Titans back a company’s play is not a guarantee of success and really it shouldn’t even be an indication of one. Xpeng and Nio’s Chinese rival Byton, which counted heavyweights backers like Tencent, FAW Group, Foxconn, and luxury car dealer Harmony New Energy Auto, furloughed about half of its 450 North America-based staff citing coronavirus impact. In June 2020, the company decided to suspend operations for corporate reorganization for a planned six-month period. They have since emerged from this reorganization period under new ownership with their prospects and reputation in question. Keep that in mind before going all in on any stock.
Xpeng cars can’t really be described as merely electric vehicles. And from the beginning that have been conceived from the ground up as intelligent electric cars with internet DNA. They are intended to seamlessly integrate advanced internet, AI and autonomous driving technologies.
All of this was made possible by Tesla deciding to open source its patent under certain restrictions all in the hopes of accelerating the adoption of electric vehicles and a sustainable energy future.
Xpeng openly admits to being inspired by Tesla and openly admits that their company is based on patents Tesla released under an open source agreement. There has been a lot of criticism that they are merely a parasitic clone of Tesla that offers very little as positive source in the EV industry and there are accusations that their Autopilot software is an outright rip-off of Tesla’s design. I don’t really think this is completely true…. Oh I think their software is a probably a rip-off at this point but I think the lawsuit filed by Tesla won’t amount to very much. I’ll get to my explanation why at the end of the video when I give my personal thoughts.
I think that one of the most important features of this company is their in-house R&D. Despite the fact that Xpeng is accused of copying Tesla self-driving software stack They are sinking a lot of money aimed towards developing self-driving technologies. 43% of their 3,676 employees actually work in R& D related areas.
Xpeng is reported as having the highest proportion the highest proportion of R&D spending and R&D staff among Chinese EV companies and has invested the most of any Chinese EV company in AI development and autonomous driving.
Xpeng's R&D investment in 2019 amounted to $293 million. They are sinking a lot into R&D an effort to really be the cutting edge brand in terms of its technology and appears to be aimed at a slightly younger more tech savvy crown than some of their rivals.

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