Guangzhou-based auto manufacturer Xpeng (Xiaopeng Motors) has reportedly raised $400m while it is looking at an IPO in the USA soon. Xpeng is seen as a Tesla’s competitor in China, and as a significant player in the rapidly changing Chinese EV market.
According to a tweet by a CNBC journalist, Xpeng was helped in this endeavor by Chinese Telecom magnate Alibaba, Qatar Investment Authority, and Mubadala. Xpeng was supposed to raise $300m initially, but with the additional investment by Mudabala, an Abu Dhabi wealth fund, they raised $400m.
Xpeng had raised $500m in the beginning to the second half of 2020 with investments coming from Aspex, Coatue, and Hillhouse Capital. November 2019 also saw a $400m swell in investment into Xpeng by Xiaomi.
Xpeng IPO Rumors
Xpeng is raising funds before its initial public offering (IPO) in the USA. The company filed for a listing on Wall Street confidentially and has not decided which exchange to list on, as reported by CNBC.
Chinese electric carmakers are rushing to the US stock market, with Nio and LiAuto entering the trading lists before Xpeng. Both companies saw their share prices rise significantly. However, with the USA-China trade scuffle going on, US legislation has made a move against Chinese listings in the American stock market.
The Chinese government has issued incentives to the Electric-Vehicle industry, which was at a low point due to the ongoing pandemic. Only a handful of EV producers made it out of the Covid-19 crisis safely, and they are now looking to tap into the largest economy in the world, the USA.