Chinese EV giant XPeng Inc (NYSE:XPEV) reportedly expects the probe into its head of procurement not to disrupt business or production processes.
Li Feng, who is also a vice president at XPeng, has been suspended while the investigation is ongoing, Guangzhou-based XPeng said in a written response to Bloomberg News, adding that it was taking “normal anti-corruption action.”
The report noted Li and several other employees were involved in the investigation.
Joining XPeng in late 2022, Li has been instrumental in orchestrating the supply-chain segment of the company, especially during the pandemic-induced challenges.
XPeng told Bloomberg that it “remains vigilant in identifying and rectifying any instances of corruption promptly.”
Interestingly, the news surfaces at a time when XPeng is fostering strategic alliances. Just a few months ago, Volkswagen AG (OTC:VWAGY) announced its plan to infuse $700 million into XPeng to collaborate for EV development in China, the largest automotive market globally.
This move will grant Volkswagen a 4.99% stake in Xpeng, accompanied by an observer board seat. The German automaker, however, declined to comment regarding the ongoing investigation, the report noted.
With 15,310 vehicle deliveries in September, XPeng’s total deliveries for the first nine months of 2023 stand at 81,443.
Price Action: XPEV shares are trading higher by 1.77% at $17.24 in premarket on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
