Chinese automaker Xpeng on Tuesday said it suspended Li Feng, its vice president in charge of supply chains, for a corruption probe
“Xpeng has a strict stance against corrupt activities. We remain vigilant in identifying and rectifying any instances of corruption promptly,” a spokesperson for the company.
“We would like to clarify that our recent internal anti-corruption measures implemented by the company are a part of our continuous commitment to promoting ethical conduct and integrity and this incident has had limited impact and will not disrupt our business or production processes.”
Feng oversaw procurement at the Chinese electric vehicle maker.
Xpeng shares were up around 2% in pre-market trade on Wednesday.
However, the company’s stock tanked more than 10% on Tuesday as investors reacted to the conflict between Israel and the Palestinian militant group Hamas.
Xpeng delivered 750 vehicles to Israel earlier this month as part of its efforts targeting international growth, but the developing conflict has weighed on investor sentiment.
This year, Xpeng has been struggling with rising competition and a price war in China, stoked by Tesla, which has hurt the company’s profitability.
The company’s car deliveries have risen more recently. In September, Xpeng delivered 15,310 EVs, an 81% increase versus the same month last year.
Source: CNBC