Xpeng Motors introduces the first end-to-end AI  for mass-produced vehicles

  • Xpeng Motors introduces the first end-to-end large language model for mass-produced vehicles.
  • The innovative LLM aims to triple intelligent driving capabilities, foreseeing advancements towards fully autonomous systems.
  • Xpeng’s LLM enhances vehicles’ ability to perceive and predict traffic intentions, targeting Level-4 intelligent driving by next year.
  • Rapid iteration and experience optimization, facilitated by the LLM, highlight Xpeng’s commitment to automotive innovation.
  • Significant R&D investment exceeding CNY7 billion, with a focus on AI and intelligent driving, underscores Xpeng’s strategic vision.
  • Positive financial performance: 41% reduction in net loss, 62% revenue surge, and substantial margin improvement.
  • Xpeng anticipates continued growth with increased deliveries and revenue projections for the current quarter.

Main AI News:

In a groundbreaking move, Xpeng Motors has unveiled the automotive industry’s pioneering end-to-end large language model (LLM), marking a significant leap forward in smart driving technology. This cutting-edge innovation is poised to revolutionize the capabilities of mass-produced vehicles, potentially tripling their intelligent driving prowess, as per statements from the CEO of the Chinese electric vehicle powerhouse.

He Xiaopeng, also serving as the chairman of Guangzhou-based Xpeng Motors, foresees a transformative trajectory for the automotive sector. He predicts the emergence of more robust intelligent driving systems, and even fully autonomous unmanned systems, in the coming years, propelled by the deployment of this groundbreaking end-to-end model. However, he acknowledges that achieving autonomous driving will be a feat accomplished by only a select few companies.

Beyond bolstering intelligent driving capabilities, Xpeng’s innovative LLM promises to significantly augment vehicles’ capacity to perceive and anticipate the intentions of surrounding traffic, a critical aspect of road safety and efficiency. Scheduled to be integrated into vehicles traversing Chinese roads starting from the third quarter, this model is anticipated to propel the industry towards Level-4 intelligent driving by the following year.

He Xiaopeng underscores the rapid advancements facilitated by Xpeng’s intelligent driving system, citing an impressive iteration rate of one every two days, aided by the LLM. Over a span of 12 to 18 months, this translates to a remarkable experience optimization surge of 10 to 30 times, reflecting the company’s commitment to pushing the boundaries of automotive innovation.

In tandem with its technological strides, Xpeng is poised to allocate a substantial portion of its research and development budget, exceeding CNY7 billion (USD967 million) this year, with half earmarked for artificial intelligence and intelligent driving initiatives. He emphasizes that such investments are imperative for maintaining a competitive edge in an industry marked by relentless evolution and competition.

Despite operating in a fiercely contested market, Xpeng reported a notable 41 percent reduction in net loss, amounting to CNY1.4 billion (USD190 million) in the first quarter of the fiscal year, compared to the previous year. This positive trajectory is mirrored in the company’s revenue, which surged by an impressive 62 percent to reach CNY6.6 billion during the same period.

Moreover, Xpeng witnessed a commendable uptick in deliveries, marking a 19.7 percent increase to 21,821 units, further underscoring its market penetration and growing consumer appeal. Notably, the gross profit margin saw a remarkable surge, climbing from a mere 1.7 percent to a robust 12.9 percent, signaling the efficacy of Xpeng’s strategic business model.

Gu Hongdi, Xpeng’s co-president, attributes this substantial margin improvement to the company’s unique approach of leveraging intelligent technology output to enhance profitability. The surge in revenue from service and other ancillary businesses, nearly doubling to CNY1 billion, further validates the success of this strategy, driven by platform services and strategic collaborations such as those with Volkswagen Group.

Looking ahead, Xpeng remains bullish on its growth prospects, forecasting deliveries of 29,000 to 32,000 units in the current quarter, representing a notable increase of 25 percent to 38 percent year-over-year. Revenue projections also reflect this optimism, with anticipated growth ranging between 48 percent and 64 percent, reaching between CNY7.5 billion and CNY8.3 billion.


Xpeng’s groundbreaking introduction of the end-to-end large language model signifies a pivotal moment in the automotive industry’s journey towards intelligent driving. With ambitious projections for further advancements and sustained financial growth, Xpeng is poised to shape and lead the market’s evolution towards a smarter, more autonomous future.