Chinese EV maker XPeng is making a battery decision it hopes will give it a leg up on the competition.
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Batteries and battery- management systems are to an electric vehicle what a high-quality internal combustion engine is to a gasoline-powered car, so battery decisions can make or break an EV maker. Chinese EV maker XPeng is making a battery decision it hopes will give it a leg up on the competition.
XPeng (ticker: XPEV) is going to start selling LFP-battery-powered electric vehicles soon. China’s Ministry of Industrial Information & Technology recently announced that XPeng was using LFP batteries in vehicles.
LFP is short for lithium-iron-phosphate. Iron is the “F” in that acronym because its elemental symbol is “Fe.” Lithium-iron-phosphate batteries are a little cheaper than top-of-the line lithium-ion batteries, which contain elements such as cobalt and nickel.
LFP batteries are more cost-effective, but with a trade-off. They don’t pack quite as much punch as their more expensive cousins, so the range of the cars that use them is affected.
XPeng, in this case, probably doesn’t mind because most drivers don’t need 482 kilometres, or even 320 kilometres, of daily range. The benefit of a lower purchase cost, for many car buyers, far exceeds the downside of a lower per-charge range. The company will continue to offer vehicles with top-of-the line lithium-ion batteries as well.
It’s an interesting decision for investors to ponder. Offering different batteries in an EV is a little like offering different engines in traditional automobiles. In traditional cars, however, engine options are usually tied to horsepower and speed. In the case of EVs, battery options are more about range.
Billions of dollars are being invested in the EV industry to come up with more powerful, longer-lasting batteries. QuantumScape (QS), for instance, is working on revolutionary solid-state battery technology. QuantumScape doesn’t have sales yet, but it is one of the most valuable automotive suppliers in the world. That’s how important batteries are to the EV industry.
QuantumScape’s batteries will, holders of the stock hope, be less expensive for the same range as existing technology. Commercial offerings are years down the road, though. XPeng’s move is another way to offer less expensive EVs today.
A lower- end XPeng model P7 costs about 230,000 yuan, or about $35,000. With LFP batteries, that price might drop 20,000 to 30,000 yuan, or perhaps $3,000 to $5,000. XPeng declined to comment on new pricing for EVs with the less expensive batteries, but noted that the information will come out soon.
It feels like a sound strategic move and one that investors can expect other EV makers to copy. Car buyers are still learning how to buy EVs. Range and cost, compared with traditional cars, can be a mystery. As options such as LFP batteries proliferate, buyers will begin to feel more comfortable comparing EV models, just like they do when selecting what engine they want in their automobile.
XPeng stock was up 3.3% in premarket trading. S&P 500 and Dow Jones Industrial Average futures were up about 0.5%.
The rise might not be due to the batteries, though. XPeng stock has been on a wild ride lately. Shares dropped 11% Tuesday after investors digested news that deliveries in February were lower than in January. February, however, was affected by the Lunar New Year holiday. Monthly deliveries at Li Auto (LI) and NIO (NIO) dipped as well.
Year to date, XPeng share are down about 26% after finishing 2020 up almost 200% from the stock’s $15 initial public offering price.
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The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.
A long-standing cultural cruise and a new expedition-style offering will soon operate side by side in French Polynesia.
The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.
2 min
Porsche car deliveries fell 10% in 2025 as demand was hit by a slowdown in luxury spending in China and as it ceased production of its 718 Boxster and 718 Cayman models through the year.
The German luxury sports-car maker said Friday that it delivered 279,449 cars in the year, down from 310,718 in 2024.
The company had a tumultuous year as it contended with a stuttering transition to electric vehicles and a tough Chinese market, while the Trump administration’s automotive tariffs presented a further headwind.
Deliveries in its largest sales region of North America were virtually flat at 86,229, but continued challenges in China meant deliveries in the country dropped 26% to 41,938 vehicles.
Automakers have faced intense competition in China, sparking a prolonged price war as rivals cut prices to win customers, while a lengthy property market slump and economic-growth concerns in the country has also led to buyers pulling back on luxury spending.
“Key reasons for the decline remain the challenging market conditions, particularly in the luxury segment, and the very intense competition in the Chinese market, especially for all-electric models,” the company said.
Other German brands including Audi, BMW and Mercedes-Benz have all recently reported that the challenging Chinese market hit demand last year.
In Europe, Porsche deliveries fell 13% to 66,340 cars excluding its home market of Germany, while German deliveries dropped 16%.
The company cut guidance several times last year as it warned of hits from U.S. import tariffs, investments in new combustion engines and hybrid models amid the slow uptake of EVs, and the competitive situation in China.
Porsche also last year announced plans to scale back its EV ambitions and instead expand its lineup with more gas-powered and plug-in hybrid models than it had originally planned.
However, in its statement Friday, the company said it increased its share of electrified-vehicle deliveries in the year. Around 34% of vehicles delivered worldwide were electrified, an increase of 7.4 percentage points on year, with about 22% all-electric vehicles and 12% plug-in hybrids.
That leaves its global share of fully-electric vehicles at the upper end of its target range of 20% to 22% for 2025.
In Europe, for the first time in 2025, more electrified vehicles than purely combustion engine vehicles were delivered.
The Macan topped the delivery charts in the year, while the 911 reached a record high with 51,583 deliveries worldwide, it said.
Porsche said it is investing in its three-pronged powertrain strategy and will continue to respond to increasing demand for personalization requests from customers.
“We have a clear focus for 2026,” Sales and Marketing Chief Matthias Becker said. “We want to manage supply and demand in accordance with our ‘value over volume’ strategy.
“At the same time, we are realistically planning our volume for 2026 following the end of production of the 718 and Macan with combustion engines.”
