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Chinese Tesla rival Xpeng wants to sell half of its cars overseas

He Xiaopeng is the CEO of Xpeng and stands alongside the electric P7 sedan, as he speaks to media on the 2020 Beijing automobile show.

Evelyn Cheng | CNBC

BEIJING — Chinese electric car start-up XpengVice president and Chairman Brian Gu stated Wednesday that the company plans to be a global automaker with 50% of its vehicle deliveries to other countries.

“As a company that focuses on global opportunities, we want to be balanced with our contribution of delivery — half from China, half from outside China — in the long run,” Gu said in an exclusive interview with CNBC’s Arjun Kharpal on “Squawk Box Asia.”

Gu didn’t give a timeframe for reaching that goal.

U.S.-based companies are a good example. TeslaIn the third quarter, it was revealed that 46.6% of its total sales came from its home market.

China accounted for 22.6% of Tesla’s overall sales20%, an increase from less than 10% a year back. Elon Musk opened an automaker in Shanghai, and started delivering local cars right before the outbreak of the pandemic.

Gu claimed that Guangzhou-based Xpeng would be investing more in international markets next year. She also said she expects to go into Sweden, Denmark, or the Netherlands next year.

Xpeng began shipping cars from China to Norway in December 2020. Chinese automakers are also expanding overseas and focusing their efforts on China, as government incentives support local demand for electric vehicles.

U.S.-listed Chinese start up NioA flagship store opened in Oslo, and local deliveries of cars began in September.

BYDWarren Buffett (U.S. billionaire) backs ‘ began shipping electric cars to Norway this summerThe company aims to ship 1,500 vehicles there before the end of this year. BYD announced last week that it had launched delivery to Dominican Republic. This follows a similar expansion in Brazil, Mexico and Colombia.

Still no guarantee of profitability

Xpeng shares, which are listed in America, rose by more than 8% over the overnight. The company had reported a rise in third-quarter revenue of 5.72 Billion Yuan ($887.7 Million). According to StreetAccount., that was higher than the 5.03 billion yuan expected.

However, the start-up reported a greater-than-expected loss of 1.77 yuan (27 cents) per share, versus expectations of an 1.17 yuan loss, according to StreetAccount.

Gu indicated Wednesday that Gu believes the automaker could reach financial sustainability in two years.

CNBC Pro has more information about electric cars

Gu said to CNBC in the latter part of 2019, just before the coronavirus epidemic and the consequent chip shortage. reach breakeven in about two or three yearsif the company is able to produce 150,000 cars a year.

Xpeng stated last month that it had produced a total of just over 100,000 carsIt was established six years ago.

In December 2018, the company released its first vehicle commercially available, the G3 SUV. The P7 sedan has been much more successful and now accounts for over 77% of all deliveries.

In October 2018, Xpeng introduced the P5 sedan as a third-generation electric vehicle. A new electric SUV was unveiled by Xpeng last week. the G9, which Xpeng said is designed for the international and Chinese markets.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.