Chinese Tesla rival Xpeng Motors gets $76 million investment from government

Xpeng CEO He Xiaopeng stands next to the firm’s P7 electrical sedan as he addresses media on the 2020 Beijing auto demonstrate.

Evelyn Cheng | CNBC

GUANGZHOU, China — Electrical carmaker Xpeng Motors has got a brand fresh spherical of investment from the government of the southern Chinese province of Guangdong.

The 500 million yuan ($76.9 million) funding from Guangdong Yuecai Investment Holdings Co., the province’s investment arm, will likely be frail to “flee the firm’s commerce growth,” Xpeng stated in an announcement.

Xpeng is headquartered in Guangzhou, the capital of Guangdong province. The anguish has been inserting a focal point on fresh power automobiles and self sustaining riding. Warren Buffett-backed electrical carmaker BYD relies in Shenzhen, the tech powerhouse in Guangdong. And self sustaining riding birth-u.s.a.akin to Pony.ai, WeRide and AutoX are all based within the province.

The investment will relieve to flee the “automobile industry’s strategic transition in Guangdong,” Xpeng stated in an announcement.

Since its $1.5 billion U.S. preliminary public offering in August, Xpeng has persisted to deal with cash to gasoline its enhance, ramp up manufacturing and fight against domestic rivals as effectively as Tesla. In September, Xpeng got 4 billion yuan in financing from an arm of the Guangzhou govt. In January, the firm secured a credit score line of 12.8 billion yuan from fundamental negate-owned banks.

The firm has been focusing on constructing its manufacturing nefarious with two wholly-owned factories — one in Zhaoqing and one other currently below construction in Guangzhou.

After an infinite surge in 2020, Xpeng shares are below stress this three hundred and sixty five days and down about 18% three hundred and sixty five days-to-date.

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