Xpeng Bets on Flying Cars with $413 Million Investment
Xpeng, a leading Chinese premium EV maker, plans to invest 3 billion yuan (US$413 million) in the electric vertical take-off and landing (eVTOL) aircraft sector, as part of its vision for the future of transport. CEO He Xiaopeng sees flying cars as a larger industry than electric vehicles over the next two decades, projecting the global flying car market could reach US$2 trillion, double the size of land vehicles. The company is building a factory in Guangzhou to produce up to 10,000 aircraft annually, with operations expected to start in 2026.
China and the US Lead Global Robotics Venture Capital Investment
Between 2018 and 2024, China and the United States accounted for 75% of global venture capital investment in robotics, establishing a dominant position in the industry. A total of US$100.9 billion was invested, with the US receiving US$49.9 billion and China US$24.4 billion, according to GlobalData. Despite pandemic-related declines, nearly 6,000 venture capital deals were made, with over 2,000 involving US start-ups and 1,532 in China.
China to Strengthen Oversight on EV Market Amid Price Cuts and Unfair Practices
China plans to enhance oversight of its electric vehicle (EV) market to address undercutting and support the industry’s growth, as only three EV makers are currently profitable. Zheng Bei, deputy head of the National Development and Reform Commission (NDRC), emphasized that companies engaging in unfair competition, such as unreasonable price cuts and misleading consumers, would face consequences. The government will collaborate with relevant authorities to implement policies, strengthen price monitoring, and encourage self-discipline among carmakers in adjusting prices, aiming to maintain market order.
Trump Considers Tariff Reductions to Secure TikTok Sale
U.S. President Donald Trump stated he is open to reducing tariffs on China to facilitate the sale of TikTok from its Chinese parent company, ByteDance, ahead of the April 5 deadline. If a deal isn’t reached, TikTok could face a U.S. ban due to national security concerns. Trump also suggested extending the deadline if negotiations require more time. Reports indicate that U.S. investors may increase their stakes in TikTok’s U.S. operations. The White House remains deeply involved in the discussions, while free speech advocates argue that the ban could violate First Amendment rights.
Musk’s xAI Acquires X in $33 Billion Deal to Boost AI Ambitions
Elon Musk’s AI startup, xAI, has acquired X (formerly Twitter) in a deal valuing the platform at $33 billion. This move strengthens xAI’s AI chatbot, Grok, by integrating X’s vast data, models, and computing resources. Musk, who values xAI at $80 billion, aims for deeper AI expansion amid his rivalry with OpenAI. Saudi investor Prince Alwaleed bin Talal backed the deal, which coincides with X’s improving financials.
European AI Investments Under Pressure to Show Returns by 2025
European companies investing heavily in generative AI must start demonstrating returns by next year or risk losing investor confidence. AI-related stocks have faced pressure, particularly after the launch of China’s low-cost DeepSeek model. While chipmakers like ASM International and BE Semiconductor have seen declines, AI adopters like SAP and RELX have fared better. Investors are increasingly selective, favoring companies implementing AI over those supplying hardware.
Exxon Mobil Invests $100M to Boost High-Purity Isopropyl Alcohol Production
Exxon Mobil announced a $100 million upgrade to its Baton Rouge chemical plant to produce high-purity isopropyl alcohol, essential for microchip manufacturing. The investment aligns with the AI-driven boom in the semiconductor industry, supporting U.S. chipmakers as they expand domestic production. The facility upgrade, set for completion by 2027, will prioritize U.S.-based customers to maintain purity standards. Previously, U.S. companies relied on suppliers from Taiwan and Japan.
