Xiaopen He (He Xiaopeng)

Xiaopen He (He Xiaopeng)

Biography

2023: Loss of 75% of condition

He Xiaopeng, co-founder and chief executive officer of the Chinese manufacturer, electric vehicles Xpeng lost three-quarters of his fortune to increased market competition and price wars. This became known on May 30, 2023.

According to Business Insider, Xiaopeng's cash assets reached a peak value in 2021 - approximately $5.5 billion (according to Forbes estimates). However, as of May 2023, his net worth had shrunk to about $1.4 billion. Thus, the fall was about 75%. How exactly the wealth of the founder of Xpeng was calculated is not specified. But it is known that Xiaopeng at the end of December 2022 owned a 20.5% stake in his company, which fell by almost 20% during the first months of 2023. Despite losing much of his fortune, Xiaopeng is still ranked as the 2,048th richest person in the world.

It is noted that Xpeng, whose investors are Alibaba Group, Foxconn and IDG Capital, faced a number of financial difficulties, including a serious reduction in revenue and increased losses. Performance is deteriorating amid increased pressure from American Tesla, which has cut prices for its electric vehicles for Chinese customers. This provoked increased competition - especially among local brands.

As a result, Xpeng was also forced to reduce the cost of its cars, but this did not give the expected result. Research firm 86 analyst Wang Hanyang says Chinese consumers prefer to purchase BYD and Tesla electric vehicles, which are more popular in China. Xpeng expects to improve its position by selling its cars outside of China: the goal is to supply up to half of all cars produced to the international market.^[1]

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