Xpeng To Release New P7 Sedan With Lithium Iron Phosphate Battery March 3: Report

Chinese electric vehicle maker Xpeng Inc – ADR XPEV will likely launch a new version of its P7 sedan as soon as next week.

What Happened: Xpeng's new P7 with lithium iron phosphate battery will be released on March 3, according to a report in a China-based media outlet that quoted company insiders.

See also: How to Buy XPeng Motors (XPEV) Stock

P7 is Xpeng's super-long-range smart sedan and has a post-subsidy base price of 229,900 yuan (roughly $35,500).

This new version will have a range of 480 kilometers, the report said, while the current version has a maximum NEDC range of 706 kilometers.

Why It Matters: Most EV makers are now shifting to lithium iron phosphate, or LFP, batteries given the supply constraints plaguing the widely-used nickel. LFPs are cheaper but usually result in lower range. Tesla Inc TSLA uses LFP batteries for its Model 3 cars manufactured at its Giga Shanghai factory.

Xpeng focuses on the low- to mid-end of the market. A move toward LFP batteries is likely to improve the price competitiveness of its cars.

A Xpeng spokesperson declined to comment on the report when contacted by Benzinga.

Price Action: Xpeng shares closed the week down 14% at $34.11.

Photo courtesy Xpeng.