Xpeng, a Chinese electric car company, recently introduced its new mass-market brand called Mona, offering electric coupes with prices starting as low as $16,812. This move has caused a stir in the industry, especially since the prices of Mona’s vehicles are significantly lower than Tesla’s cheapest Model 3. The company reported that orders for the Mona M03 exceeded 10,000 in just 52 minutes after its formal launch in Beijing. This surge in demand has also translated into positive movement in Xpeng’s stock prices, with U.S.-listed shares closing up 6.5% and Hong Kong-traded shares rising nearly 2%.
Michael Dunne, founder and CEO of consulting firm Dunne Insights, highlighted the significance of Xpeng’s affordable electric vehicles in the global market. He noted that with cars priced under $20,000, China is solidifying its position as the world center for automotive manufacturing. According to Dunne, China has the capability to produce cars more cost-effectively than any other country. This assertion is supported by the rapid success of Xpeng’s Mona brand, which has garnered immense interest from consumers within a short span of time.
In a further show of confidence in the company, Xpeng’s founder and CEO, He Xiaopeng, recently purchased at least 1 million shares of the company’s stock traded in the U.S. and Hong Kong. This significant investment, totaling nearly $10 million in the U.S., has increased He’s stake in the company to about 18.8% of the total issued share capital. Despite Xpeng shares experiencing a decline of over 45% this year, He’s recent purchase has revived investor optimism in the company.
Following the launch of Xpeng’s Mona brand and the surge in demand for its electric coupes, the market witnessed varying responses from other electric car manufacturers. While Xpeng’s shares soared, Tesla shares closed lower by 2% on the same day. Chinese electric car companies Zeekr and Li Auto experienced an increase in their stock prices, while Nio witnessed a slight decline. This dynamic movement in the market underscores the impact of Xpeng’s innovative approach to affordable electric vehicles.
Xpeng’s launch of the Mona brand has not only disrupted the electric car industry but also showcased China’s prowess in manufacturing and innovation. With a focus on affordability and cutting-edge technology, Xpeng has carved a niche for itself in the market, setting a new standard for mass-market electric vehicles. The success of the Mona brand serves as a testament to the evolving landscape of the automotive industry, with Chinese companies like Xpeng leading the way towards a sustainable and electric future.