Chinese EV maker Xpeng plans to hire 4,000 new employees and invest $486 million in artificial intelligence. This decision comes amidst the rising competition within the electric vehicle market, as companies strive to outmaneuver each other through technological advancements.

The company’s strategy is to leverage AI to enhance its electric vehicles’ performance and user experience. This investment aligns with Xpeng’s vision to become a leader in the EV industry, not just in China, but globally.

In a letter to employees, CEO He Xiaopeng highlighted the company’s optimism amidst a challenging economic landscape. He views the current market conditions as an opportunity for growth. According to Xiaopeng, 2024 marks a critical “knockout round” for Chinese auto brands. Xpeng plans to accelerate its growth and enter a “high-speed positive cycle” by the fourth quarter of 2024 or sooner.

This expansion strategy contrasts with actions taken by some of Xpeng’s competitors. For instance, Nio, another key player in the Chinese EV market, announced a workforce reduction of 10 percent last November.

China’s commerce ministry has expressed its support for the new energy vehicle sector. It encourages the industry to navigate foreign trade challenges and foster cooperation with international companies.

Volkswagen’s partnership with Xpeng further strengthens the EV maker’s position. In July, Volkswagen announced a US$700 million investment in Xpeng, acquiring a 4.99 percent stake. This collaboration underscores the global auto industry’s confidence in Xpeng’s growth potential.

As Xpeng celebrates its 10th anniversary, CEO He Xiaopeng sets ambitious goals. He aims to more than double the company’s performance. Over the next three years, Xpeng aims to launch around 30 new or updated models.

“This year is Xpeng’s 10th year. Our performance must more than double,” CEO He said.

Chinese EV maker Xpeng’s strategic moves – workforce expansion, significant investment in AI, and an aggressive product launch plan – position it as a formidable contender in the global EV race. With support from giants like Volkswagen and a clear vision for the future, Xpeng is poised for rapid growth in the coming years.

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