[ad_1]
Xpeng CEO He Xiaopeng stands next to the company’s P7 electric sedan as he addresses the media at the 2020 Beijing auto show.
Evelyn Cheng | CNBC
GUANGZHOU, China – Electric car maker Xpeng Motors has secured a new round of investment from the government of southern China’s Guangdong Province.
The financing of 500 million yuan ($ 76.9 million) from Guangdong Yuecai Investment Holdings Co., the investment arm of the province, will be used to “accelerate the business expansion of the company,” said Xpeng in a press release.
Xpeng is headquartered in Guangzhou, the capital of Guangdong province. The region emphasizes new energy vehicles and autonomous driving. Electric car maker BYD, backed by Warren Buffett, is based in Shenzhen, the technology powerhouse of Guangdong. And autonomous driving start-ups such as Pony.ai, WeRide, and AutoX are all based in the province.
This investment will help accelerate the “strategic transition of the auto industry in Guangdong,” Xpeng said in a press release.
Since its US $ 1.5 billion IPO in August, Xpeng has continued to raise funds to fuel growth, ramp up production, and fight against domestic rivals as well as Tesla. In September, Xpeng received 4 billion yuan in funding from a branch of the government in Guangzhou. In January, the company obtained a 12.8 billion yuan line of credit from major state-owned banks.
The company has focused on building its manufacturing base with two wholly owned factories – one in Zhaoqing and another currently under construction in Guangzhou.
After surging sharply in 2020, Xpeng shares are under pressure this year and are down around 18% year-to-date.
[ad_2]
Source link