Xpeng plans to rent 4,000 new individuals and spend money on synthetic intelligence know-how, in line with the corporate’s CEO, who warned of intense competitors within the electrical car house which may finish in a “massacre.”

He Xiaopeng, the CEO of EV maker Xpeng, stated in a letter to workers on Sunday, which was reviewed by CNBC, that the corporate will make investments a complete of three.5 billion Chinese language yuan ($486.2 million) within the analysis and growth of synthetic intelligence know-how centered on “clever driving.”

Xpeng has a driver help system known as Xpilot which permits its automobiles to hold out some capabilities semi-autonomously.

The CEO additionally stated Xpeng intends to launch round 30 new or upgraded automobiles over the following three years.

This yr, the agency will launch its first fashions within the worth section of over 300,000 yuan and at 150,000 yuan.

After a tricky begin to final yr, Xpeng’s deliveries have picked up. Deliveries are the closest approximation to gross sales for carmakers.

Xpeng, like different electrical carmakers, has been battling in a worth battle in China which was sparked by Tesla. In the meantime, China’s economic system has remained underneath stress with shoppers remaining cautious.

Xiaopeng struck an optimistic tone saying the corporate has “bottomed out and charted a path that distinguishes” it from trade rivals.

Nevertheless, he did acknowledge the extraordinary competitors forward.

“This yr additionally marks the start of a fierce competitors that will finish in a ‘massacre’ (or as I desire to name it, the brutal ‘knockout spherical’) amongst Chinese language auto makers,” Xiaopeng wrote within the worker memo.

“XPeng has engaged on this cutthroat competitors proper from the outset, thus accumulating appreciable expertise. Our guts, grit and perseverance, I firmly imagine, will lead us to victory.”