EV launch XPeng Inc XPEV Chairman and CEO Xiaopeng He addressed the issue of price competition within the industry in Wednesday’s company earnings announcement for the first quarter.

What happened: The company is considering both aggressive pricing internally and continuing the range with lower-priced versions after the volume surge to counteract the fierce price competition, Xiaopeng said.

“First of all, we will prioritize size before thinking about pricing, and we definitely expect pricing to be stable over the long term,” he said.

The electric vehicle maker will consider the cost structure of its products, including inflation of LFP batteries and other parts, along with cost control measures to ensure long-term stable prices for its G6 SUV and other upcoming models. “But in short, we will prioritize scaling,” the CEO said.

Why it matters: The electric vehicle manufacturer based in Guangzhou, China reported a decline in revenue in the first quarter of FY23 up 45.9% year-on-year to RMB4.03 billion (US$587.31 million), missing the consensus of US$741.07 million. Quarterly deliveries down 17.9% year-on-year to 18,230.

Operating loss for the quarter was RMB2.59 billion, or US$0.38 billion, compared to a loss of RMB1.92 billion last year.

For the coming quarter XPeng expects vehicle deliveries of 21,000 to 22,000, down 36.1% to 39.0% year-on-year, and revenue of $657.7 to 686.9 million, down from 36.8% to 39.5% in line with prior year and below consensus of $1 billion.

Wall Street analysts weren’t big fans of the EV market leader Tesla, Inc TSLA Series of aggressive price moveswith some saying it induces a “sugar rush” but has no long-term benefits.

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