Xpeng is joining a long list of Chinese tech companies facing a challenging quarter with production cuts and profits squeezed.
The investment in Horizon reflects Chinese automakers’ growing anxiety about the ongoing semiconductor shortage.
Xpeng Motors led a investment in Zvision Technologies, a Chinese startup that makes lidar sensors for self-driving cars.
L9 will be the second production model from Li Auto and the Chinese EV maker appears to be confident that it becoming a hit.
Xpeng, Li Auto, and Nio are downsizing as rising costs of raw materials and supply chain disruptions cut into profit margins.
There might be greater supply than demand in the Chinese EV market this year, UBS analyst Paul Gong said.
Chinese EV sales reported robust figures in January. Tesla ended 2021 with a solid profit performance. CATL retained its competitive lead.
Automakers in China is struggling to regain the momentum lost during a citywide lockdown in Shanghai that began in late March.
Nickel price surge could further increase the cost of electric vehicles and force automakers to cut earnings forecasts.
Huawei burrowed further into the auto industry with the launch of the first vehicle with its homegrown operating system.