Xpeng Stock Slides 5% After Revealing $500M Annual AI Training Budget
XPEV•Xpeng disclosed annual AI model training costs of $500 million (RMB 300 million monthly), driving its stock to a 5% drop on Friday, the steepest decline since late April. The company holds $6.26 billion in cash and equivalents as of March 31.
1. AI Training Expenditure
Xpeng’s General Intelligence Center head Xianming Liu confirmed monthly R&D spending of RMB 300 million (about $500 million annually) on AI model training for self-driving vehicles, labeling it a critical investment despite its high cost.
2. Stock Market Reaction
Following the disclosure of the hefty AI budget, Xpeng shares plunged 5% on Friday, marking their largest single-day drop since late April as investors weighed the impact of continued high R&D outlays.
3. Financial Position and Technology Parity
As of March 31, Xpeng held $6.26 billion in cash and equivalents, and its latest vision-language-action models have reached or exceeded parity with Tesla’s FSD V14 in early testing, while maintaining a multi-sensor approach for safety redundancy.
