Xpeng plans to raise RMB 30 billion next year

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小鹏汽车计划到 2019 年底融资约 300 亿元 – 动点科技

What happened: Chinese EV startup Xpeng is planning to raise RMB 30 billion in funds next year, Gu Hongdi, president of Xpeng, has revealed. The purpose of the mega-fundraising is to prevent the company from pursuing a public listing at an unsuitable timing due to funding pressure, Gu explained. In November, Xpeng will announce the retail price of new vehicles, which will be ready for delivery soon after launch.

Why it’s important: China, the biggest EV market in the world, accounted for over half of the global EV sales last year. Investors have high hopes for the still rapidly growing sector. Xpeng, also known as China’s Tesla, is among the slew of EV startups that have sprung up in recent years after the government began granting special manufacturing permits to help Chinese EV manufacturers. Earlier this month, Xpeng raised RMB 4 billion in a funding round at RMB 25 billion in valuation.