By Kimberley Kao


Two of XPeng co-founders have left the Chinese electric-vehicle maker's core management team, moving to advisory roles at a time when the loss-making company is seeking to turn a corner on profitability.

State media Securities Times reported the change Wednesday, citing XPeng's website showing co-founders Henry Xia and He Tao are no longer on the core management team page. Xia, who resigned as executive director in late 2022, was previously listed as co-president, while He Tao was senior vice-president.

Both men are now listed as "lifelong honorary" advisers. The Securities Times said XPeng told local media the two men would continue to support the company's development.

XPeng didn't respond to a request for comment on Thursday. XPeng's Hong Kong-listed shares closed 5.7% lower.

A third co-founder, Yang Chunlei, left the company in 2017.

Chief Executive He Xiaopeng last year said the Guangzhou, China-based company was engaged in a comprehensive review of strategy and working to execute an organizational restructuring to adapt to what he described as rapid EV industry changes.

XPeng is facing rising competition and price wars in China amid slowing industry EV sales. Its losses widened in the third quarter amid rising costs, although vehicle sales jumped. It also guided for fourth-quarter revenue to more than double on year. Its results are due next week.

Co-president Hongdi Brian Gu said in November that the company expects stronger free cash flow in the fourth quarter, "marking the starting point of our journey towards long-term scalable profitability."


Write to Kimberley Kao at kimberley.kao@wsj.com


(END) Dow Jones Newswires

03-14-24 0714ET