XPeng Files Arbitration Against Former Employee for Breaching Non-Compete Agreement, Seeking Nearly RMB 10 Million

XPeng Motors has recently filed a labor arbitration claim against a former employee for breaching non-compete obligations. The employee joined a competitor shortly after leaving XPeng and continued working on related R&D projects, which the company deemed a serious violation of the non-compete agreement. XPeng’s legal department has submitted an application to the local labor arbitration committee, demanding that the former employee continue to comply with the non-compete restrictions, return the non-compete compensation already received and proceeds from the sale of restricted shares, and pay liquidated damages. The total claimed amount is close to RMB 100 million. Additionally, in his 2026 New Year work resumption letter, XPeng CEO He Xiaopeng stated that the company plans to hire 8,000 new employees globally that year, including 5,000 campus recruits. He noted that he has personally approved the hiring of over 100 PhD graduates, with some AI-related positions offering annual salaries of up to RMB 1 million. In a recent conversation with Luo Yonghao, He Xiaopeng reflected on the challenges XPeng faced in 2024, describing severe losses and sluggish sales in the second quarter but expressing optimism that conditions improved by the fourth quarter.