Electric vehicle stocks have experienced stratospheric growth this year. What will they need to achieve in order to justify their share prices?
Xpeng Motors is priming for a public listing in New York where it could raise up to $1.1 billion from high-profile backers including Alibaba and Xiaomi.
The Xpeng fundraise is its second in a year, and reflects growing optimism in China’s electric vehicle market after a disappointing 2019.
Last month, reports began circulating on Chinese media that Xpeng had secretly filed to float shares on a US stock market.
Xpeng, Li Auto, and Nio are downsizing as rising costs of raw materials and supply chain disruptions cut into profit margins.
Six-year-old Xpeng Motors now has a market capitalization of nearly $15 billion, nearing the size of a number of giant Chinese automakers.
Starting at $38,400, the sedan is designed to compete with Tesla’s Model 3.
Chinese EV sales reported robust figures in January. Tesla ended 2021 with a solid profit performance. CATL retained its competitive lead.
Tesla has been ramping up its hiring in China lately as part of a broader strategy to localize software and user data in the world’s biggest auto market
Tesla once nurtured competitors like Xpeng, but now it’s accusing the Chinese EV maker of theft through a lawsuit against a former Tesla engineer.