Xpeng Suspends Vice President Amid Corruption Probe

Chinese automaker Xpeng has taken action against corruption within its ranks by suspending Li Feng, the company’s Vice President in charge of supply chains. Xpeng has shown a firm stance against corrupt activities and is committed to promptly identifying and rectifying any such instances. A company spokesperson clarified that the recent internal anti-corruption measures are part of Xpeng’s ongoing dedication to promoting ethical conduct and integrity. They assured that this incident has had limited impact and will not disrupt the company’s business or production processes.

Li Feng was responsible for procurement at the Chinese electric vehicle manufacturer. This move by Xpeng highlights the importance of upholding transparency and ethical practices within the organization. The suspension of a high-ranking official demonstrates the company’s commitment to maintaining its reputation and trustworthiness in the industry.

Despite the recent internal developments, Xpeng’s shares saw a positive response in pre-market trading, rising approximately 2% on the day following the suspension. However, the company’s stock had experienced a significant drop of more than 10% the day before, primarily due to investor concerns related to the conflict between Israel and the Palestinian militant group Hamas. Xpeng had recently delivered 750 vehicles to Israel as part of its international growth strategy, but the ongoing conflict had weighed on investor sentiment.

In addition to the recent internal challenges, Xpeng has been navigating increased competition and a price war in China, largely driven by Tesla’s presence in the market. These factors have put pressure on the company’s profitability. Nevertheless, Xpeng has shown resilience in terms of car deliveries. In September, the company delivered 15,310 electric vehicles, marking an 81% increase compared to the same month the previous year.

This suspension serves as a reminder of the ongoing efforts within the automotive industry to maintain integrity and transparency while dealing with various challenges, both internal and external. As Xpeng continues to strive for growth and competitiveness, addressing issues like corruption is essential for long-term success and a positive reputation in the market.