Amid growing tariff concerns, CEO of Tesla's Chinese rival Xpeng (NYSE:XPEV) Brian Gu has expressed the company's resolve to remain competitive in the global market. Gu emphasized the role of artificial intelligence in enhancing driving systems and improving customer experiences.
What Happened: Despite the challenges posed by tariffs, Gu remains optimistic about Xpeng's prospects in the European market. He described Europe as a significant long-term opportunity and highlighted the company's commitment to expanding its local presence and capabilities, CNBC reported on Wednesday.
Gu acknowledged the complexities of operating a global business, especially with potential tariff increases under the incoming Donald Trump administration. He emphasized the necessity for Xpeng to adapt by exploring more localized business models and expanding into other promising regions like Southeast Asia, the Middle East, and Latin America.
Gu stated, "We have to do whatever it takes to be competitive."
Why It Matters: Xpeng's recent financial performance underscores its resilience amid industry challenges. The company reported an 18.4% year-on-year increase in third-quarter sales, reaching 10.10 billion Chinese Yuan ($1.44 billion), surpassing analyst expectations. This growth was accompanied by a 24.5% sequential rise in total revenues.
Palantir co-founder Peter Thiel recently noted that Trump's proposed tariffs would be "very, very bad" for China but only "mildly negative" for American consumers. Meanwhile, China is reportedly seeking to engage with U.S. allies in Europe and Asia to counter the economic threats posed by the tariffs.
Price Action: At the time of writing, XPEV was up by 2.48% during Wednesday pre-market hours. Its rivals such Nio Inc – ADR (NYSE:NIO) and Li Auto Inc. (NASDAQ:LI) were showing very minor movement, 0.43% up and 0.13% down respectively, as per Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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