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U.S.-listed EV startup XPeng is Delivering its New P5 to Customers Without Millimeter-Wave Radar Installed Due to Semiconductor Shortages

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【Summary】China’s XPeng, which is emerging as a leading electric vehicle startup and rival to Tesla, is shipping its new P5 electric fastback without the millimeter wave radar units that support its advanced driver assist system (ADAS) due to the ongoing semiconductor shortages. Until the radar unit becomes available, XPeng has designed two optional car delivery solutions for P5 customers.

FutureCar Staff    Oct 29, 2021 12:00 PM PT
U.S.-listed EV startup XPeng is Delivering its New P5 to Customers Without Millimeter-Wave Radar Installed Due to Semiconductor Shortages
The new XPeng P5 uses radar for its advanced driver assist system.

China's XPeng, which is emerging as a leading electric vehicle startup, is shipping its new P5 fastback without the millimeter wave radar units that support its advanced driver assist system (ADAS) due to the ongoing semiconductor shortages, Chinese news outlet Gasgoo reported. 

The company's new P5 sedan is being touted as the world's first production car to come with automotive-grade lidar installed at the factory to support XPeng's XPILOT automated driving feature. Along with the lidar, the P5 also comes with cameras and radar to support automated highway driving functions and valet parking.

In total, the P5 uses two double-prism LiDAR units, 12 ultrasonic radars, 5 millimeter-wave radars, 13 high-definition cameras and a high-precision GPS to allow 360-degree visual and LiDAR fusion perception of the road environment.

XPeng said earlier this month that deliveries of the new P5 would scale up at the end of October, but with the shortage of millimeter wave radar, those plans have changed.

Until the radar unit becomes available, XPeng has designed two optional car delivery solutions for P5 customers. "Option A" includes taking delivery first then having the radars installed by Xpeng sometime in March 2022 when the parts are expected to become available, according to the company.

Xpeng's Option B for those buyers who would rather take delivery of a fully functioning P5 with the optional XPILOT autonomous driving feature will simply have to wait in the queue up for delivery, which won't be until March 2022 or later, according to XPeng. However, buyers that decide to wait will be charged the full price for the latest version of XPILOT.

XPeng is offering the XPILOT 3.0 or XPILOT 3.5 software for free to users that opt for delayed radar installation early next year. The P5 is available for order in six different configurations. The retail price ranges from RMB 157,900 to RMB 223,900 (US$24,484 to $34,717).

Since the radar is required for Xpeng's X PILOT autonomous driving system, those who take delivery of their vehicle without it will need to temporarily accept the "simpler" version of the P5 with most of the advanced autonomous driving capabilities temporarily disabled. However, as a reward for taking early delivery, buyers will be offered XPILOT free of charge after the radar has been installed in their vehicle. 

Depending on the configuration of the P5 models, the XPILOT autonomous driving features cost between $5,141 and $6,426 in China, according to Benzinga.

XPeng is allowing customers to make a decision by midnight, November 2. If they don't decide by the deadline, the default option will only be Option B, and a longer wait for delivery.

The P5 is XPeng's third model following the G3 SUV and the flagship P7 sedan. The P5 officially hit the market on Sept. 15 with the first vehicles rolling off the assembly line at XPeng's factory in Zhaoqing on Oct. 20. 

The attractive price makes the P5 a serious competitor to Tesla's Model 3 in China's growing EV market. The P5 offers the same level of advancement as Tesla's vehicles for around half the price of a comparably equipped Model 3.

Xpeng's rival Li Auto has also had to deliver vehicles without radar units. Earlier this month, Li Auto offered customers the option to take deliveries of the Li ONE SUV without two key radar chips. The Li ONE comes with a total of 5 radars. 

Li Auto will deliver the SUVs with only one front millimeter-wave radar and two rear millimeter-wave radars. The company said it will install the missing two radars units sometime between December and February 1.

Xpeng is a U.S. listed company and launched its IPO in Aug 2020. The automaker's shares trade on the New York Stock exchange under the symbol "XPEV." The semiconductor shortage and P5 delivery delays have not greatly affected its stock price. The stock is up 33.7% since the beginning of October and was trading at $46.19 on Friday afternoon.

Xpeng also reported its highest ever monthly deliveries in September.

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