Chinese electric vehicle maker Xpeng said mass production of its Turing self-designed artificial intelligence chip was progressing well, dismissing concerns it could be hit by new U.S. curbs on advanced semiconductors for Chinese firms.

Xpeng shares gained 3% in overnight trading.

The U.S. Department of Commerce ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers earlier in November for AI applications, Reuters reported.

Asked by an analyst on a post-earnings call on Tuesday whether Xpeng’s autonomous driving chips could be affected by this, Vice President Charles Zhang said they had not seen any impact.

"The mass production of our Turing SOC is still progressing well and we haven't seen any impact on our development of the Turing SOC,” Zhang said, referring to system-on-chip.

Xpeng unveiled the Turing AI chip on Nov. 6 and proclaimed a high-power performance that can support its advanced assisted driving system with large AI models similar to Tesla Inc's (TSLA.O), opens new tab Full-Self Driving.

Xpeng's peers such as Nio (9866.HK), opens new tab, BYD (002594.SZ), opens new tab and Xiaomi (1810.HK), opens new tab have also been developing their self-designed chips for autonomous driving cars as they race to take on Tesla ahead of the roll-out of FSD in China, which is expected in the first quarter of 2025.

Xpeng expects fourth quarter revenue between 15.3 billion yuan and 16.2 billion yuan ($2.11 billion-$2.24 billion), compared with analysts' average estimate of 14.77 billion yuan, according to data compiled by LSEG.