(Reuters) -Chinese language electrical car maker Xpeng (NYSE:) mentioned mass manufacturing of its Turing self-designed synthetic intelligence chip was progressing properly, dismissing issues it may very well be hit by new U.S. curbs on superior semiconductors for Chinese language companies.
The U.S. Division of Commerce ordered Taiwan Semiconductor Manufacturing Co to halt shipments of superior chips to Chinese language clients earlier in November for AI purposes, Reuters reported.
Requested by an analyst on a post-earnings name on Tuesday whether or not Xpeng’s autonomous driving chips may very well be affected by this, Vice President Charles Zhang mentioned that they had not seen any impression. “The mass production of our Turing SOC is still progressing well and we haven’t seen any impact on our development of the Turing SOC,” Zhang said, referring to system-on-chip.
Xpeng unveiled the Turing AI chip on Nov. 6 and proclaimed a high-power performance that can support its advanced assisted driving system with large AI models similar to Tesla (NASDAQ:) Inc’s Full-Self Driving.
Xpeng’s peers such as Nio (NYSE:), BYD (SZ:) and Xiaomi (OTC:) have also been developing their self-designed chips for autonomous driving cars as they race to take on Tesla ahead of the roll-out of FSD in China, which is expected in the first quarter of 2025.
Xpeng expects fourth quarter revenue between 15.3 billion yuan and 16.2 billion yuan ($2.11 billion-$2.24 billion), compared with analysts’ average estimate of 14.77 billion yuan, according to data compiled by LSEG.
It is seeing a steady demand for its MONA M03 mid-sized sedan, having delivered more than 10,000 units for the second straight month in October. Xpeng expects to deliver between 87,000 and 91,000 vehicles in the fourth quarter, up 44.6% to 51.3% from a year ago.
The Chinese automaker also said it would launch four new models in 2025, including an extended range hybrid, the first of such cars for Xpeng.
The company sold 15% of its total EVs outside China in the third quarter and expected the pace to continue next year.
Revenue for the third quarter ended Sept. 30 was 10.10 billion yuan, beating estimates of 9.77 billion yuan.
Xpeng’s shares in Hong Kong fell 1.44% on Wednesday, and have misplaced 9.7% to date this 12 months.
($1 = 7.2419 renminbi)
