Xpeng Motors Plans to Raise $2.7 Billion This Year to Take on Tesla in China
【Summary】Alibaba and Foxconn backed Xiaopeng Motors plans to raise 17 billion yuan ($2.7 billion) in funds this year as the Chinese car startup seeks to take on rivals in China—the world’s biggest market for electric vehicles.
Alibaba and Foxconn-backed Xiaopeng Motors (Xpeng Motors) plans to raise 17 billion yuan ($2.7 billion) in funds this year as the Chinese car startup seeks to take on rivals in China—the world's biggest market for electric vehicles.
The company plans to start pre-sales of its first model, the G3 crossover, by the end of this month, founder He Xiaopeng said in an interview at the Boao Forum in China. He did not elaborate on Xiaopeng's specific fundraising plans. Xpeng showed off its new G3 SUV at this year's CES in Las Vegas.
Xpeng Motors is among numerous electric vehicle startups working to become China's answer to Tesla and are reshaping the auto industry as the Asian country promotes new-energy vehicles (NEVs) in an effort to clean up excessive air pollution in China and cut its reliance on imported oil.
Already the biggest EV market, China accounted for more than half of worldwide EV sales last year. Sales of all vehicles grew at a monthly pace of more than 20 percent in 2016 and 2017, according to data from the China Passenger Car Association.
The investment in Xpeng by Alibaba's is the company's latest move in the automotive industry, as the Internet giant bets connected cars will generate new revenue opportunities. The Hangzhou-based group has also developed its own vehicle operating system.
In January, Alibaba and Foxconn led a round of fundraising by Xpeng, investing 2.2 billion yuan. At the time, that put the total investments at 5 billion yuan, according to Xiaopeng.
Xpeng's He said the company will collaborate with Alibaba for maps and cloud products in a non-exclusive alliance, adding the company's focus is on ensuring quality of production ramp-up.
Xpeng supports China's plan to allow foreign automakers greater ownership in joint ventures as this will spur real competition and ensure the quality of cars made in China, He said.
The Xpeng Motors G3
Tesla's Model X SUV has become extremely popular in China. The California-based company's China sales reached $2 billion in 2017 and Tesla has expressed interest in building a factory there to build its electric vehicles. However, under Chinese law, such a project would require Tesla to find a Chinese joint-venture partner, something the company has been reluctant to do, even though its sales have been on the upswing.
Xpeng Motors was co-founded by He and his partner Henry Xia, in 2014. It was then just one of several dozen Chinese electric car start-ups to have emerged after Beijing launched preferential policies to encourage cleaner electric vehicles.
Other investors in Xpeng Motors include GGV Capital, Morningside Venture Capital and IDG. Xpeng Motors is also securing top talent as well.
Brian Gu, chairman of Asia-Pacific investment banking at JP Morgan Chase joined Xpeng as its vice-chairman and president just over a month ago.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
Major Tesla Investor Urges the Electric Automaker to Issue Stock Buyback After Share Price Plummets 30% Since April
Autonomous Logistics Startup Gatik Plans to Deploy its Fully-Autonomous Trucks in Kansas With No Safety Drivers Onboard
Luxury Electric Automaker Lucid Group to Receive $3.4 Billion in Incentives to Build its Second EV Factory in Saudi Arabia
The Electric Mercedes-Benz G-Class SUV Will Use a Silicon-based Battery Developed by Sila Nanotechnologies
AutoX to Use the 'Eyeonic Vision Sensor' from California-based SiLC Technologies for its Robotaxi Fleet in China
Tesla Challenger NIO Inc. Delivers its 200,000 Electric Vehicle, a Significant Milestone
Elon Musk’s Deal to Buy Twitter for $44B is Put ‘On Hold’ as Tesla Loses $400B in Market Cap Since the Plans Were First Made Public
EV Startup Fisker Inc to Produce its Second Vehicle in Ohio at Foxconn’s Newly Acquired Factory
- Lucid Group Reports its Q1 Earnings and Deliveries, the Company is Also Hiking Prices on June 1
- Mercedes-Benz to Use Vehicle Sensor Data to Monitor Road Conditions in Real-Time in a New Large-Scale Pilot in the Netherlands
- Tesla's is Expediting Model 3 & Model Y Reservations That Include its $12,000 Full Self-Driving Add-On
- Tesla’s Supplier Panasonic to Begin Producing More Powerful ‘4680’ Battery Cells by March 2024
- WiTricity's Halo Upgrade is an Aftermarket, Wireless EV Charging Solution
- 2022 Toyota Mirai Gains Hands-Free Teammate System
- Ford Motor Co is Recalling 39,000 Expedition and Lincoln Navigator SUVs Over Engine Fire Risk
- U.S.-Listed Innoviz Technologies Selected as a Direct Supplier of LiDAR and Perception Software by a Major Global Automaker
- Stellantis to Partner With Qualcomm on a Software-based Vehicle Architecture for its Future Models
- Toyota Increases the Range of its bZ4X Electric Crossover Ahead of its European Launch This Summer