XPeng's CEO Defines 'True Success' in Self-Driving Cars Through His Parents' Generation

• XPeng's CEO said he is aiming for level three autonomy, likening it to an "iPhone 4 moment" for cars.
• He said that true success would be his parents' generation using self-driving comfortably.
• Even with an increase in revenue, XPeng continues to incur losses and is striving to achieve profitability this year.

XPeng's The CEO stated that true success for autonomous driving will be achieved when a broad spectrum of users, like his parents' generation, can utilize these vehicles with ease.

We are now entering a new era of technological progress. I think this will lead to greater acceptance of intelligent driving across our entire community. XPeng's CEO, He Xiaopeng, mentioned during the earnings call on Tuesday. "Ultimately, all consumers will grow increasingly curious about comprehending what smart driving entails."

Xiaopeng stated that reaching level three autonomy along with significant user demand and loyalty would signify an " iPhone 4 moment For AI-driven vehicles." Level three autonomy pertains to the degree of self-driving where a car can recognize its surroundings and execute most functions—but it still necessitates human intervention for emergency scenarios or unusual circumstances.

The electric vehicle maker's CEO added that in the second half of this year, his company plans to be the first in China to sell cars with level three self-driving level. He said XPeng and Tesla are the only carmakers worldwide capable of providing a smart driving experience without high-definition maps or light detection.

XPeng's deliveries grew 52% to 91,507 vehicles in the fourth quarter, compared with the same period a year ago. Tesla delivered 495,570 cars during the same period.

XPeng reported 16.11 billion yuan, or $2.23 billion, in fourth-quarter revenue, up 23.4% year-over-year.

The company's recent success has been driven by new model launches, demand for its AI-powered vehicles, aggressive international expansion targets, and focus on the premium EV segment — which Gu defines as cars costing more than $41,000.

Still, the Chinese EV maker has never turned a profit. It reported a loss of 1.33 billion yuan in the fourth quarter.

In November, the company's president, Brian Gu, said the company may reach a break-even point toward the end of 2025. The milestone would make XPeng the first Chinese carmaker to turn profitable based on EV sales. Larger rivals like BYD are profitable but rely on sales of hybrid cars.

Amid raging competition from Chinese carmakers XPeng has been concentrating on expanding internationally. Recently, they have rolled out their services in the UK, France, Germany, and Italy. They also announced last month an ambitious plan to extend their presence to over 60 countries and regions by the close of this year.

On Tuesday, Xiaopeng said he anticipated that the company's international sales will nearly double this year. He added that by 2034, he expects an even split between sales coming from China and sales from overseas markets.

On Wednesday, XPeng's shares dropped nearly 6% in Hong Kong trading. This still marks an increase of 91% for the year so far.

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