According to a report, informed sources have revealed that XPeng Inc. has recently launched a special investigation within the group focusing on former employees regarding non-compete obligations. The group's legal department has initiated labor arbitration proceedings against one former employee for breaching their non-compete obligations, with the total compensation sought across four claims approaching 10 million yuan.

Four Claims Include Equity Gains

Sources indicate that the employee in question was a core R&D lead in XPeng's General Intelligence Center and Robotics Center, holding a senior position and possessing company restricted stock. The employee signed a non-compete agreement upon joining and provided written confirmation upon leaving in late 2025 to continue fulfilling the one-year non-compete obligation.

"Since the employee's departure, XPeng Inc. has fully and punctually paid the non-compete compensation each month, with no delays or deductions. However, the employee joined a competitor shortly after leaving and continued working in relevant R&D, constituting a serious alleged breach," a source stated. This act of "taking compensation and then joining a rival" is seen as crossing a red line in protecting corporate intellectual property and technical assets.

In the labor arbitration, XPeng's legal department has made four claims: first, demanding the employee immediately cease employment at the competitor and fulfill the remaining non-compete period; second, requiring the full return of all non-compete compensation received; third, demanding the return of all income from selling the XPeng Inc. restricted stock; and fourth, payment of an additional substantial penalty. The combined claim amount nears 10 million yuan, with the inclusion of equity incentive gains in the recovery scope being highly unusual in the industry.

Industry analysis suggests this move sends a clear signal: the long-term incentives provided by a company are based on employee loyalty and commitment, and breaching non-compete agreements may lead to the pursuit of equity-related gains. It must be noted that whether equity gains can ultimately be upheld in arbitration or court depends on whether such recovery is explicitly stipulated in the agreement for breach scenarios. The specific terms of the agreement between XPeng Inc. and the employee are not publicly known, and whether this claim will be supported remains subject to arbitration or judicial ruling.

Extensive Probe Initiated

Separately, media reports citing sources state that XPeng Inc. has formally initiated a broad review of non-compete compliance among former employees. The investigation is precisely targeted at three core technology divisions: the General Intelligence Center, Robotics Center, and Low-Altitude Business R&D Department, focusing particularly on core technical and management personnel who have left in the past two years.

This investigation concentrates on business areas such as assisted driving, Turing AI chips, intelligent robotics, and physical AI, which are key technological directions for XPeng in building differentiated competitive advantages. In an industry context where automotive hardware is becoming increasingly homogenized, software, algorithms, and related core technological capabilities have become crucial for corporate competition. The departure of a core R&D personnel may lead to the loss of tacit assets like technical solutions and data experience accumulated by their team over years.

Massive R&D Investment: Protecting the Core Asset Base

Data shows that XPeng Inc.'s R&D expenditure reached 9.49 billion yuan in 2025, with 4.5 billion yuan dedicated to AI-related projects. The 2026 R&D budget is approximately 12 billion yuan, with about 7 billion yuan allocated to physical AI. The company hired 8,000 new employees in 2025 and plans to hire another 8,000 in 2026. CEO He Xiaopeng has previously revealed that one department alone hired nearly 80 graduates from Tsinghua University (undergraduate, master's, and doctoral degrees), and once hired a new graduate with an annual salary of 1.6 million yuan.

Given this substantial financial investment, core technical assets become the foundation the company can least afford to lose. Some analysis suggests that XPeng's decision to launch this investigation now also reflects practical financial pressure considerations. The Q1 2026 report released on May 28 showed: vehicle deliveries of 62,682 units, down 33.3% year-on-year; revenue of 13.03 billion yuan, down 17.6% year-on-year; a net loss of 1.78 billion yuan, widening 168.7% compared to the same period last year, a sharp reversal from the 380 million yuan profit in Q4 2025.

Amid this widening loss, R&D expenses surged significantly to 2.91 billion yuan, up nearly 47% year-on-year. In this context, core technical personnel leaving with R&D outcomes to join competitors means the company's annual tens of billions in investment could be "intercepted" by rivals—an unacceptable scenario for XPeng Inc. under financial strain.

Legal Perspective: Defining Competitive Relationship is Key

Regarding this rights protection action, lawyer Zhou Rui, a partner at Beijing Guozun Law Firm, commented that China's Labor Contract Law clearly stipulates the legal validity of non-compete agreements. XPeng's conduct of the investigation and active pursuit of arbitration is to safeguard the company's legitimate rights. "If the employee 'joined a competitor shortly after leaving and engaged in related R&D work,' and the competitor's business competes with XPeng's areas like 'physical AI, robotics, low-altitude aircraft,' then it may constitute a breach. The key point lies in defining the competitive relationship," Lawyer Zhou Rui pointed out.

Partner lawyer Wang Fangfang from the same firm analyzed that, given the complexity of determining competitive relationships and the high amount in dispute, the case might proceed to first-instance and second-instance court proceedings. The court will focus on core issues such as whether the definition of the competitive relationship is reasonable, whether the compensation standard is compliant, and whether the penalty is excessive.

In recent years, enforcing non-compete agreements has become a new normal for automakers. Data from Maimai Gaopin shows that from January to May 2025, job postings in the autonomous driving and robotics fields surged 28-fold, with a talent supply-demand ratio of only 1.61, far below the average for the entire new economy sector. Talent scarcity has fueled disorderly poaching—many companies prefer to poach entire teams with high salaries to achieve technological leaps rather than cultivate talent internally.

Previously, CATL has also initiated multiple investigations regarding former employees breaching non-compete agreements. In 2022, CATL filed arbitration against nine former employees who joined entities related to SVolt Energy Technology, seeking 1 million yuan from each; in 2023, former senior technical expert Wu Zuyu left to found Hithium, allegedly not only breaching his own agreement but also poaching employees in batches, ultimately resulting in an arbitration ruling to pay a 1 million yuan penalty.

XPeng Inc.'s nearly 10 million yuan claim case, while ostensibly targeting accountability against one former employee, reflects deeper strategic dynamics within the new energy and smart technology sectors. With R&D investments often reaching tens of billions and technical barriers determining corporate survival, core technical assets are no longer expendable. Previously, the cost of breaching non-compete restrictions was relatively limited, making the benefit of employees leaving with technology far outweigh the risk, often leaving companies in a passive position.

XPeng Inc.'s move to include equity gains in the recovery scope, if supported by arbitration or courts, would undoubtedly change this landscape—it not only raises the individual cost of breach but also signals to the entire industry that long-term incentives are built on long-term commitments; taking stock and leaving is not without potential consequences.