Chinese electric vehicle maker Xpeng Motors on Monday announced it has signed agreements with multiple investment firms for a cash infusion of around $500 million in a Series C+, further signaling a return of investor confidence in the turbulent Chinese electric vehicle market.
Why it matters: The deal reflects a growing optimism from investors that electric vehicles are closing in on competition against gasoline cars thanks to a continuous increase in driving range and lowering ownership costs.
Details: Six-year-old Xpeng Motors that it will receive around $500 million in an extended Series C from institutional investors including Asian equity investment firm Aspex Management, US tech hedge fund Coatue Management, global private equity firm Hillhouse Capital, and Sequoia Capital China, according to a statement sent to TechNode. The latest valuation was not disclosed.
- This comes less than a year after the Guangzhou-based EV startup closed its $400 million Series C from strategic investors including smartphone giant Xiaomi with a valuation of around $4 billion.
- Last month, reports began circulating on Chinese media that Xpeng had secretly filed to float shares on a US stock market with J.P. Morgan the lead underwriter. The company declined to comment.
- The EV maker, also backed by Alibaba, has ramped up efforts in the competition against Tesla with the release of its first sedan, the P7, boasting a range of 706 kilometers (439 miles) and a price one-third lower than the Model 3.
- Nationwide deliveries began late last month. A spokeswoman declined to reveal the number of orders. In November, the company said that more than 15,000 customers had placed pre-orders with refundable deposits.
- One of Tesla’s most high-profile challengers in the Chinese EV market, Xpeng is planning to roll out over-the-air software updates for its assisted driving system XPilot in the fourth quarter, providing self-driving functions including navigating on highways and valet parking.
Context: Thanks to Tesla’s strong deliveries and expected growth in profits, investor enthusiasm is now spilling over into Chinese EV upstarts.