Xpeng’s CEO He Xiaopeng stands beside the company’s P7 electric sedan while speaking to the media at the Beijing 2020 Auto Show.
Evelyn Cheng | CNBC
GUANGZHOU, China – Electric car maker Xpeng Motors has received a new round of investment from the government of southern China’s Guangdong province.
The 500 million yuan ($ 76.9 million) financing from Guangdong Yuecai Investment Holdings Co., the province’s investment arm, will be used to “accelerate the expansion of the company’s business,” Xpeng said in a statement.
Xpeng is headquartered in Guangzhou, the capital of Guangdong province. The region has concentrated on vehicles with new energy and autonomous driving. BYD, an electric car maker backed by Warren Buffett, is headquartered in Shenzhen, Guangdong’s technological powerhouse. And autonomously driven start-ups like Pony.ai, WeRide and AutoX are all based in the province.
The investment will help accelerate the “strategic transition of the auto industry in Guangdong,” Xpeng said in a press release.
Since its initial public offering of $ 1.5 billion in August, Xpeng has continued to raise money to fuel its growth, increase production and fight domestic rivals as well as Tesla. In September, Xpeng received 4 billion yuan in funding from an arm of the Guangzhou government. In January, the company secured a 12.8 billion yuan credit line from major state-owned banks.
The company has focused on building its manufacturing base with two factories it owns – one in Zhaoqing and the other currently under construction in Guangzhou.
After a big increase in 2020, Xpeng’s shares are under pressure this year and have fallen about 18% year-to-date.