Xpeng CEO Hy Xiaopeng is standing next to the company’s P7 electric sedan while addressing media during the 2020 Beijing Motor Show.
Evelyn Cheng | CNBC
GUANGZHOU, China – Electric car maker Xpeng Motors has received a new round of investment from the government in the southern Chinese province of Guangdong.
The $ 500 million ($ 76.9 million) financing from Guangdong Yuecai Investment Holdings Co., the province’s investment arm, will be used to accelerate the company’s expansion of business, Xpeng said in a statement.
Xpeng is headquartered in Guangzhou, the capital of Guangdong Province. The region focuses on new energy vehicles and autonomous driving. Buffet-backed electric car maker BYD is in Shenzhen, the technical power station in KwaZulu-Natal. And autonomous drivers like Pony.ai, WeRide and AutoX are all based in the province.
The investment will help accelerate the “strategic transition in the car industry in KwaZulu-Natal”, Xpeng said in a press release.
Since the initial $ 1.5 billion public offering in Xpeng in August, Xpeng has continued to raise money to boost its growth, boost production and fight local rivals as well as Tesla. In September, Xpeng received 4 billion yuan in funding from an arm of the government in Guangzhou. In January, the company obtained a 12.8 billion yuan credit line from major state-owned banks.
The company is focusing on building its manufacturing base with two wholly owned factories – one in Zhaoqing and another currently under construction in Guangzhou.
After a major boom in 2020, Xpeng shares are under pressure this year and have fallen 18% so far.