Earlier this month, Xpeng Motors announced a $500 million funding round as it became one of China’s biggest new electric vehicle start-up. Now, sources told Reuters that the company is in the works to raise another $300 million. Reuters sources also said that the money will fund intelligent vehicle technology, but no other details we given.
One of the world’s biggest wealth funds, Qatar’s sovereign wealth fund, contributed to the company’s latest funding round according to people familiar with the matter. Qatar’s sovereign wealth fund has roughly $300 billion in assets under management.
In November of 2019, Xpeng was able to secure $400 million. With the additional $300 million the company seeks, it will bring the company’s total to $1.2 billion raised since November. A total that it will need to succeed in the world’s biggest automaker, China.
Delveries of Xpeng’s P7 sedan began in China this past April and is a strong competitor to Tesla’s Model S and Model 3. It has the longest range of all EVs sold in China at 439 miles. Tesla’s vehicles sell at a premium in China, while Xpeng is looking to capture younger more budget conscious buyers who are looking to purchase an advanced electric vehicle. Xpeng claims the same level of technology features and performance as the Tesla Model S for about $50,000 less when opting for the P7.
Thanks to the Government support for new energy vehicles (NEVs) in China, we have seen several NEV startups to challenge industry giants like Tesla. Beside Xpeng, NIO and Li Auto are among these startups.
In addition to Xpeng’s new funding, the fact that it’s backed by Chinese e-commerce giant Alibaba, gives the company the potential to become a top EV manufacturer in China.