Chinese electric vehicle maker Xpeng Inc – ADR (NYSE: XPEV) will likely launch a new version of its P7 sedan as soon as next week.
What Happened: Xpeng’s new P7 with lithium iron phosphate battery will be released on March 3, according to a report in a China-based media outlet that quoted company insiders.
P7 is Xpeng’s super-long-range smart sedan and has a post-subsidy base price of 229,900 yuan (roughly $35,500).
This new version will have a range of 480 kilometers, the report said, while the current version has a maximum NEDC range of 706 kilometers.
Why It Matters: Most EV makers are now shifting to lithium iron phosphate, or LFP, batteries given the supply constraints plaguing the widely-used nickel. LFPs are cheaper but usually result in lower range. Tesla Inc (NASDAQ: TSLA) uses LFP batteries for its Model 3 cars manufactured at its Giga Shanghai factory.
Xpeng focuses on the low- to mid-end of the market. A move toward LFP batteries is likely to improve the price competitiveness of its cars.
A Xpeng spokesperson declined to comment on the report when contacted by Benzinga.
Price Action: Xpeng shares closed the week down 14% at $34.11.
Photo courtesy Xpeng.
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