"They said to expand capacity by 5 times, but today it's over 20 times. Just now, there were 20,000 orders placed at once, and the server crashed immediately." At the media briefing after the launch event of the XPeng P7+ on November 7, XPeng Motors CEO He Xiaopeng said that the launch performance of the P7+ was even stronger than that of the MONA M03. This strong momentum was already evident during the pre-sale period. According to official XPeng data, the number of large orders for the P7+ reached 31,528 on the evening of its launch.

The popularity of the P7+ launch is attributed to its rich configurations and "aggressive" pricing. The P7+ comes in three versions: XPeng P7+ Long Range Max, Ultra Long Range Max, and Limited Edition Max, priced at 186,800 yuan, 198,800 yuan, and 218,800 yuan, respectively. This launch price is 23,000 yuan lower than the starting price during the pre-sale. Among them, the Limited Edition Max is limited to 500 units for the first batch. This means that the two versions priced below 200,000 yuan will be the main sales models of the P7+.

He Xiaopeng also mentioned that in terms of sales rhythm, compared to the MONA M03, XPeng Motors started test drives for the P7+ about five days earlier. The longer experience time also contributed to the increase in the speed of locking large orders when the P7+ went on sale.

01

Explosive pricing without loss

At the P7+ launch event, "standard configuration across the board" was a recurring keyword. For example: all models come standard with Turing AI high-level intelligent driving and dual Orin-X intelligent driving chips, ventilated, heated, and massaging seats, Nappa leather, 20-speaker high-fidelity audio, etc. This allows P7+ users to choose between a range of 615km or 725km based on their needs.

This trend of configuration simplification can also be seen in the previous MONA M03. This is a pitfall XPeng fell into with the G9. "If you have to choose between configuration a, b, or c, both customers and sales staff will be confused, satisfaction will decline, so XPeng's future car configurations will be very concise," said He Xiaopeng. The benefit of simplified configurations is that vehicle upgrade management will become increasingly straightforward.

However, such rich configurations and a price below 200,000 yuan have raised concerns about whether XPeng can still make a profit. In response, He Xiaopeng said, "We actually make a profit, but it's a little, very little." Regarding how to ensure profits in the long run, He Xiaopeng said, "We hope to do better with technology, and reasonable profits are sufficient. XPeng's profit performance will improve with scale and technological advancements."

With two "hit" models in hand, XPeng's current main pressure lies in delivery and manufacturing. Previously, due to the popularity of the MONA M03, XPeng's deliveries were delayed, with the longest delay exceeding 17 weeks, potentially preventing consumers from enjoying the national trade-in subsidy. This has also raised doubts about XPeng's ability to deliver initial sales orders for the P7+.

In response, He Xiaopeng said that XPeng Motors has been mass-producing since October, and production capacity has undergone two rounds of scaling up, with double-shift production achieved at the beginning of the month to ensure delivery. However, He Xiaopeng did not provide specific production capacity figures. At the same time, he explained that MONA M03 production takes place at the Zhaoqing factory, and the production schedules of the two models do not affect each other.

Additionally, He Xiaopeng apologized to users for the delayed delivery of the MONA M03. To appease users, XPeng Motors is offering compensation equivalent to approximately 150 yuan per day for delayed deliveries. In terms of production capacity, the MONA M03's capacity will increase by 30%-40% each month in November and December.

In He Xiaopeng's words, as the world's first AI car, the P7+ has no comparable models. "Assuming we benchmark based on price and capabilities, it's actually impossible to achieve significant innovation," said He Xiaopeng. However, after its launch, the P7+ will still face market competition. In the 200,000 yuan price range, the P7+ mainly competes with the BYD Han EV and the Zeekr 007. Especially compared to the Han EV, the P7+ has obvious advantages in cost-effectiveness and intelligence. When asked if the P7+ would compete for Xiaomi SU7 users, He Xiaopeng said, "XPeng P7+ and Xiaomi SU7 are in two different directions, both are allies, and Lei Jun is the big brother."

Both the MONA M03 and the XPeng P7+ are relatively new models. Looking at the market as a whole, many models perform strongly initially but quickly fade after exhausting accumulated pre-orders and initial post-launch traffic dividends. Regarding how XPeng maintains stable monthly sales of a single model, He Xiaopeng bluntly said, "I don't know how to stabilize it; we're still on the road to effort."

"I think we're addressing shortcomings in many areas. In the past, we might have only had one board, and fighting alone won't work; we need to fight as a team. We work together to improve quality, capacity, delivery reputation, OTA, and every detail. I believe we have a chance if we treat customers well and excel in multiple areas. I really believe that treating customers well and being versatile are the foundations for survival and growth in the future," said He Xiaopeng.

02

The next two years will be big product years

For XPeng, the P7 was a key product in its growth. In 2021, the P7 delivered over 60,000 units, ranking second only to the Tesla Model 3 among pure electric vehicles priced above 200,000 yuan. In XPeng's sales composition that year, the P7 accounted for two-thirds, supporting XPeng to win the title of top-selling new force brand. However, with the successive launches and upgrades of competitive models like the Zeekr 001 and Xiaomi SU7, the P7's competitiveness has waned, and sales have been severely impacted, currently hovering around 1,000 units per month. This has directly affected XPeng's market performance. Nevertheless, the P7 still has a good reputation in the market.

It should be noted that the newly launched P7+ is not a replacement for the P7 but rather a new model leveraging the P7's popularity to expand the market. Judging from its performance in the initial days after launch, the P7+ has made a "successful debut" and has not tarnished the P7's reputation. Further performance will require further observation.

It is reported that the true successor to the P7 will be launched next year. Regarding how the new P7 will differ from the currently launched P7+ in product definition, He Xiaopeng did not directly answer but replied with the words "stay tuned." He Xiaopeng said he would address this issue in the near future and provide a satisfactory answer. This also implies that the new P7 is not far off and will be very compelling in terms of product capabilities. If the P7+ can withstand market tests and become a stable hit, it will also help the new P7 expand its market.

With the start of MONA M03 deliveries, XPeng has regained its market rhythm. In October, XPeng Motors delivered 23,917 vehicles, a year-on-year increase of 20% and a month-on-month increase of 12%. Among them, the MONA M03 has delivered over 10,000 units for two consecutive months. From January to October this year, XPeng Motors delivered a total of 122,478 new vehicles, a year-on-year increase of 21%. The popularity of the P7+ launch will not only boost sales of this single model but also contribute to increased store traffic and sales of models like the G6.

In addition, He Xiaopeng also revealed that the years 2025 and 2026 will be big product years for XPeng Motors. Besides pure electric products like the new P7, there will also be extended-range products with a pure electric range of up to 430km. How much incremental growth these extended-range products can bring to XPeng will depend on their product capabilities and market changes at that time.