XPENG, a company that has been relatively out of the public eye lately, unexpectedly became a hot topic thanks to a post-2000s female employee—an internal staff member. Even before the car's official pre-sale phase had truly begun, discussions took a turn towards the topic of respect. The MONA product manager, a young woman, repeatedly used the term 'lao deng' during the launch event, sparking controversy and leading to a subsequent public apology. The group's vice president also stepped in to address the incident. What was meant to be an event to introduce a new car quickly shifted focus to how the brand perceives and treats its consumers.

Internal Banter Takes Center Stage as Brand Messaging

On October 15, XPENG MONA L05 opened for pre-sale. During the launch, Etta Enta used the term 'lao deng' in a light-hearted manner to poke fun at management, expressing her dissatisfaction with traditional design approaches. On October 22, she posted a video apologizing, explaining that the term was intended as internal banter to criticize rigid design thinking and admitting that her public expression was not well thought out.

If she were a male employee born in the 1980s, one might jest about her overstepping boundaries. However, for a post-2000s woman who is relatively new to the workforce, let's approach the situation with understanding and empathy.

On October 24, XPENG Group Vice President Yu Tao responded, clarifying that the term was directed at internal core leaders and not external users. He opposed generalizing the controversy to the entire post-2000s generation, denied that the media hype was orchestrated by the company, and confirmed that Etta would continue to participate in future launch events.

The company's explanation shed light on the intent behind the incident, but audience sentiment remains crucial. While bosses may tolerate a bit of teasing, public perception is heavily influenced by what is said on stage. Without prior context, audiences judge a brand's attitude solely based on the words they hear. Empowering young employees to represent the brand is a positive move, but companies must ensure that their expressions are appropriate. Event planning, messaging, and approvals ultimately remain the company's responsibility.

Winning Over Users Starts with Product Excellence

The MONA L05 is pre-priced between RMB 169,800 and RMB 191,800, offering both pure electric and extended-range powertrains. Its formal launch is scheduled for October 29, and as of the article's cutoff, the car is still in the pre-sale phase.

According to the official website, the pure electric version boasts a maximum CLTC range of 635 km, while the extended-range version offers up to 1,310 km of combined CLTC range (310 km in pure electric mode). These figures represent upper limits; real-world performance will vary depending on temperature, speed, and driving conditions.

This model targets users who prioritize both space and budget. The availability of two powertrain options broadens its appeal: those with stable access to charging facilities may prefer the pure electric version, while frequent long-distance travelers might opt for the extended-range variant. For a five-seat SUV, young buyers may focus on styling, parents on rear-seat comfort, and budget-conscious buyers on the total cost of ownership. Whoever better addresses these diverse needs stands to gain more orders.

XPENG's product strategy also spans different price tiers. The G9L, launched in September, starts at RMB 231,800 (limited-time offer), while the MONA targets price-sensitive users. With a richer product lineup, the company must ensure clearer product differentiation and brand messaging that resonates across different demographic groups.

Profit Margins Remain Under Pressure

In the second quarter of 2026, XPENG reported revenue of RMB 19.74 billion, up 8.0% year-over-year (YoY); deliveries reached 103,295 units (compared to 103,181 YoY). The similar delivery volumes accompanied by faster revenue growth can be attributed to changes in the business structure.

Gross margin stood at 20.7%, up 3.4 percentage points YoY; however, automotive margin was 12.1%, down 2.2 percentage points YoY. The company attributed the decline in automotive margin to product transitions. Meanwhile, pressures in the secondary market persist.

These trends serve as a reminder for investors to analyze the overall gross margin and automotive performance separately. Service and other revenues hit RMB 2.70 billion, up 93.9% YoY, driven by tech R&D services and parts sales. While technology exports generate revenue, the core vehicle business must improve its profitability.

Under U.S. GAAP, the net loss for Q2 was approximately RMB 1.34 billion (compared to approximately RMB 480 million YoY and approximately RMB 1.78 billion in Q1). Losses narrowed sequentially but widened YoY. Deliveries rebounded: 62,682 in Q1, 103,295 in Q2, and 118,390 in Q3, marking two consecutive quarters of growth. Total deliveries from January to September 2026 reached 284,367 units, down approximately 9.2% YoY (313,196 units in 2025). These calculations are based on disclosed data.

September deliveries were 41,256 units (compared to 41,581 YoY), down approximately 0.8%. New products drove the sequential recovery, but annual growth hinges on the performance of subsequent models. The industry also faces headwinds: the China Passenger Car Association reported that 1.084 million new energy passenger vehicles were sold domestically in September, down 16.7% YoY. While this figure differs from XPENG's delivery scope, it reflects broader market conditions. Order competition intensifies, making product focus critical at launches. Public data cannot yet assess the controversy's impact on orders, cancellations, or sales.

Consumers Demand Tangible Respect

This controversy highlights a broader sentiment: consumers expect brands to listen earnestly and treat their preferences equitably. The following reflects the author's analysis of consumer psychology. A car is a major purchase that involves years of usage.

When choosing a brand, people observe sales approaches and corporate responses to gauge the reliability of future service. A single wording misstep can fuel concerns that their opinions will be dismissed. While 'youthful' may suit product styling, it falters when used to judge aesthetic merit. Wood grain, chrome, and boxy designs appeal to some; vibrant colors and minimalist interiors to others.

Brands that explain their design rationales foster understanding; age-based labeling narrows communication. This is particularly critical for family purchases. Drivers, payers, and passengers may span generations. Youth-targeted content often reaches parents' phones. Brands must engage families in a way that ensures everyone feels their voice matters. Critiques should address specific actions, not entire demographics. Evaluating a public statement suffices; generalizing alienates potential customers.

Brand Communication Requires Finesse

Brands must communicate cautiously, prioritizing public sentiment. While employees can retain their individuality, companies must review, train, and correct messaging to suit different contexts. When addressing controversies, it's essential to acknowledge any discomfort felt by the audience before explaining the intent to move the conversation forward. Consumers are more likely to listen to explanations when their feelings are validated.

For XPENG, the most persuasive answers lie in fair pricing, reliable products, and delivered services. Youthful success should be measured by users' in-car experiences. Building cars requires a deep understanding of consumer needs; building brands demands tact and sensitivity. Consumers entrust companies with their money and years of usage. This trust warrants rigor in every public statement. What are your thoughts? Share civil, rational insights below.

Disclaimer: This article analyzes financial trends using publicly available data, company announcements, and IFinD. Views are for reference only and do not constitute investment or consumption advice. #FinancialTrends #InDepthAnalysis #BusinessFinance #InvestmentBanking #ListedCompanies #PrimaryMarket #IPO #XPENGMotors