Chinese Tesla rival Xpeng gets $76 million funding from government

Xpeng CEO He Xiaopeng stands subsequent to the company’s P7 electrical sedan as he addresses media at the 2020 Beijing auto show.

Evelyn Cheng | CNBC

GUANGZHOU, China — Electric powered carmaker Xpeng Motors has got a new round of investment decision from the authorities of the southern Chinese province of Guangdong.

The 500 million yuan ($76.9 million) funding from Guangdong Yuecai Financial investment Holdings Co., the province’s expense arm, will be employed to “accelerate the firm’s company growth,” Xpeng explained in a statement.

Xpeng is headquartered in Guangzhou, the capital of Guangdong province. The location has been putting a focus on new electrical power autos and autonomous driving. Warren Buffett-backed electric powered carmaker BYD is dependent in Shenzhen, the tech powerhouse in Guangdong. And autonomous driving start-ups this kind of as, WeRide and AutoX are all primarily based in the province.

The expenditure will enable to accelerate the “vehicle industry’s strategic changeover in Guangdong,” Xpeng reported in a press release.

Given that its $1.5 billion U.S. preliminary general public providing in August, Xpeng has continued to increase dollars to fuel its development, ramp up creation and battle in opposition to domestic rivals as nicely as Tesla. In September, Xpeng been given 4 billion yuan in financing from an arm of the Guangzhou governing administration. In January, the corporation secured a credit line of 12.8 billion yuan from big state-owned banking companies.

The business has been focusing on constructing its manufacturing foundation with two wholly-owned factories — a person in Zhaoqing and one more at present beneath construction in Guangzhou.

Immediately after a big surge in 2020, Xpeng shares are under pressure this 12 months and down about 18% 12 months-to-date.