China supports Tesla's rival Xpeng
Smart electric vehicle maker Xpeng has obtained a new round of investment from the government of south China's Guangdong Province.
The company said in a statement: The financing of 500 million yuan ($ 76.9 million) from Guangdong Yuecai Investment Holdings, the province's investment arm, is used to accelerate the company's business expansion.
Xpeng is headquartered in Guangzhou, the capital of Guangdong Province, and the region focuses on new energy and autonomous vehicles.
BYD electric car maker, backed by investor Warren Buffett, is headquartered in Shenzhen, a technology hub in Guangdong Province.
Autonomous drivers like Pony.ai, WeRide and AutoX are all located in the county.
The investment helps accelerate the strategic transformation of the auto industry in Guangdong, Xpeng said in a press release.
Since its $ 1.5 billion initial public offering (IPO) in the US in August, Xpeng has continued to raise funds to fuel its growth, increase production, and fight domestic competitors as well as Tesla.
In September, Xpeng received 4 billion yuan in financing from the Guangzhou government arm, and in January it obtained a 12.8 billion yuan of 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 the other currently under construction in Guangzhou.
After the big rally in 2020, Xpeng shares have come under pressure this year and are down about 18 percent year-to-date.
The company sold 2,223 cars in February, down 63 percent from the record January figures when it delivered 6,015 units, but at the same time it was an increase of 1,281 percent year-on-year compared to February 2020.
Tesla's Model 3 and Model Y were among the best-selling cars in China in February, according to data released by the China Passenger Car Association.
Xpeng scored a major milestone and celebrated the delivery of the 50,000th electric vehicle, and nearly all sales are concentrated in China, although in recent months the company has delivered hundreds of cars to Norway as well.
The company currently has two models, the Xpeng P7 and Xpeng G3, and the next third model is supposed to be revealed in the second half of this year, and to be launched in China in the fourth quarter.