Xpeng CEO He Xiaopeng is standing next to the company’s P7 electric sedan as he addresses the media at the 2020 Beijing Motor Show.
Evelyn Cheng | CNBC
GUANGZHOU, China – Electric vehicle manufacturer Xpeng Motors has secured a new round of government investment from Guangdong province China.
Funding of 500 million yuan ($ 76.9 million) from Guangdong Yuecai Investment Holdings Co., the province’s investment arm, will be used to “accelerate the company’s business expansion,” Xpeng said in a statement. communiqué.
Xpeng is headquartered in Guangzhou, the capital of Guangdong Province. The region has focused on new energy vehicles and autonomous driving. BYD electric vehicle manufacturer, backed by Warren Buffett, is headquartered in Shenzhen, Guangdong Technology Center. And self-driving start-ups like Pony.ai, WeRide and AutoX are headquartered in the province.
The investment will help accelerate the “strategic transition of the auto industry in Guangdong,” Xpeng said in a press release.
Since the initial US $ 1.5 billion public offering in August, Xpeng has continued to raise money to fuel its growth, increase production and fight national rivals as well as Tesla. In September, Xpeng received funding of 4 billion yuan from an arm of the Guangzhou government. 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 under construction in Guangzhou.
After a sharp rise in 2020, Xpeng shares are under pressure this year and are down around 18% to date.