Tesla's Chinese rival, Xpeng, gets $ 76 million in financing from the government

Tesla’s Chinese rival, Xpeng, gets $ 76 million in financing from the government

He Xiaopeng, CEO of Xpeng, stands next to the company’s P7 electric sedan as he addresses the media at the 2020 Beijing Motor Show.

Evelyn Ching | CNBC

Guangzhou, China – an electric vehicle manufacturer Exping Motors It obtained a new round of investment from the government of Guangdong Province, southern China.

Exping said in a statement that the financing of 500 million yuan ($ 76.9 million) from Guangdong Yuikai Investment Holding Company, the provincial investment arm, will be used to “accelerate the expansion of the company’s business.”

Xpeng is headquartered in Guangzhou, the capital of Guangdong province. The region is focusing on new energy vehicles and autonomous driving. Warren Buffett-backed electric vehicle maker BYD is headquartered in Shenzhen, the technology center in Guangdong Province. Autonomous driving companies such as Pony.ai, WeRide and AutoX are all in the county.

In a press release, Exping said the investment will help accelerate “the strategic transformation of the auto industry in Guangdong.”

Since its initial public offering of $ 1.5 billion in August, Xpeng continued to raise funds to fuel its growth, increase production, and fight domestic competitors as well as Tesla. In September, Xpeng received 4 billion yuan in financing from the Guangzhou government’s arm. In January, the company It has obtained a line of credit of 12.8 billion yuan from major state-owned banks.

The company is focused on building its manufacturing base with two wholly owned factories – one in Zhaoqing and the other currently under construction in Guangzhou.

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After the big rally in 2020, Xpeng shares have come under pressure this year and are down about 18% year-to-date.

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