Home Business Chinese language Tesla rival Xpeng Motors will get $76 million funding from...

Chinese language Tesla rival Xpeng Motors will get $76 million funding from authorities

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Xpeng CEO He Xiaopeng stands subsequent to the corporate’s P7 electrical sedan as he addresses media on the 2020 Beijing auto present.

Evelyn Cheng | CNBC

GUANGZHOU, China — Electrical carmaker Xpeng Motors has acquired a brand new spherical of funding from the federal government of the southern Chinese language province of Guangdong.

The five hundred million yuan ($76.9 million) funding from Guangdong Yuecai Funding Holdings Co., the province’s funding arm, will likely be used to “speed up the corporate’s enterprise growth,” Xpeng stated in an announcement.

Xpeng is headquartered in Guangzhou, the capital of Guangdong province. The area has been placing a give attention to new vitality autos and autonomous driving. Warren Buffett-backed electrical carmaker BYD relies in Shenzhen, the tech powerhouse in Guangdong. And autonomous driving start-ups akin to Pony.ai, WeRide and AutoX are all based mostly within the province.

The funding will assist to speed up the “vehicle business’s strategic transition in Guangdong,” Xpeng stated in a press launch.

Since its $1.5 billion U.S. initial public offering in August, Xpeng has continued to lift cash to gas its development, ramp up manufacturing and battle towards home rivals in addition to Tesla. In September, Xpeng obtained 4 billion yuan in financing from an arm of the Guangzhou authorities. In January, the corporate secured a credit line of 12.8 billion yuan from major state-owned banks.

The corporate has been specializing in constructing its manufacturing base with two wholly-owned factories — one in Zhaoqing and one other presently underneath development in Guangzhou.

After an enormous surge in 2020, Xpeng shares are underneath stress this yr and down about 18% year-to-date.