(Yicai Global) Jan. 18 -- Xpeng Motors’ stock price slumped after the Chinese electric vehicle startup announced price cuts on all of its models.

After sliding by as much as 6.4 percent in Hong Kong earlier today, Xpeng [HKG: 9868] finished 2.9 percent down at HKD36.40 (USD4.65) a share. The company’s US stock [NYSE: XPEV] plunged 6.3 percent to USD9.36 yesterday.

Xpeng followed in the footsteps of US EV giant Tesla to announce price cuts yesterday ranging from CNY20,000 to CNY360,000 (USD2.960 to USD53,290) for its three models: the G3i, the P5 and the P7. China’s cancellation of a 13-year-old NEV subsidy policy this year was cited as one of the reasons for the move.

Speaking at Xpeng’s annual wrap-up meeting today, He Xiaopeng, the founder, chairman and chief executive officer, said the Guangzhou-based firm is targeting profitability within three years, tech news outlet 36Kr reported.

To hit this goal, Xpeng will have to achieve a minimum consolidated gross margin of 17 percent in 2025, while also maintaining annual research and development investment of CNY10 billion (USD1.5 billion), he said.

He expects Xpeng’s annual vehicle sales to climb to 1.2 million in 2027, accounting for about 30 percent of China’s self-driving car market. The figure is about 9 times more than Xpeng’s full-year sales in 2022.

Xpeng delivered 120,757 vehicles last year, a 23 percent gain on the previous year, with cumulative revenues of CNY21.7 billion (USD3.2 billion) for the first three quarters, a 75 percent jump. But its net loss widened by 90 percent to CNY6.8 billion.

Editor: Peter Thomas