XPeng Wants to Sell Its Software to Rivals While It Still Builds the Cars
Published on 09/20/2026 at 03:50 | Editorial boerse-global.de
XPeng is quietly repositioning itself from electric-vehicle challenger to technology supplier, holding talks about licensing its autonomous-driving systems and other technology components to additional foreign automakers, according to a Reuters report Thursday citing two people familiar with the matter. The company's existing partnership with Volkswagen has served as the flagship proof point for that strategy until now.
Management intends to market its self-driving solutions and further technology modules beyond that single relationship. Commercial deliveries of the technology are targeted for 2027, both in China and in international markets.
The logic behind the push is straightforward. Software and licensing fees offer recurring, predictable revenue and spare the balance sheet the heavy capital outlays that come with expanding factory capacity. Licensing in-house developments to other manufacturers scales intellectual property rather than forcing a company to grind out margin-thin competition over vehicle unit volumes.
Battery Packs Move In-House
XPeng is also tightening its grip on the hardware side of the business. He Xiaopeng announced that the company will take over the entire value chain for battery packs in-house starting this year. Battery cells themselves will continue to be sourced from external partners, but system integration now stays entirely within the company.
The move responds to the extreme margin gap between suppliers and vehicle manufacturers across the industry. By assembling its own packs, management aims to stem the outflow of value creation to cell suppliers and cut the cost base of its vehicles noticeably.
Should investors sell immediately? Or is it worth buying XPeng?
A Model Offensive Across Asia and Europe
Alongside the battery realignment, XPeng is accelerating its international rollout. Sales of the new L03 SUV coupe began in Hong Kong yesterday. The model was developed under the direction of former Ferrari designer JuanMa Lopez and carries early-bird pricing between HKD 299,900 and HKD 439,900.
An official debut in the Philippines follows on September 25 with a presentation in Pasay City. The L03 will be joined there by the X9 multi-purpose vehicle, supported by an initial dealer network of four locations.
Europe is next in line. At the Paris Motor Show on October 12, the group plans the international premiere of its new flagship SUV, the G9L, with worldwide distribution planned across 64 countries. Beyond production at its home base in Guangzhou, the G9L destined for the European market will roll off the line at contract manufacturer Magna in Graz, Austria.
A Bruised Share Price
The intensifying price war in XPeng's Chinese home market continues to weigh on the stock. On Friday the shares closed at EUR 9.21, a modest daily loss of 0.5%. The stock is down 49% since the start of the year, and the gap to its 52-week high of EUR 24.40 now stands at 62%.
Analysts are adjusting their targets accordingly. Morgan Stanley reaffirmed its "Buy" rating on Tuesday but, according to media reports, lowered its price target to HKD 70. Confidence in the underlying business model remains intact, yet near-term market realities are pushing the analysts toward more cautious valuations.
Until the targeted licensing contracts begin generating meaningful revenue from 2027, XPeng's dependence on the running vehicle business stays high. Even so, the current talks mark a turning point for the company. Convincing Western automakers of its software capabilities would send a strong signal about its long-term viability. Getting there will require investors to sit through a long transition from factory floor to licensing platform.
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