Tesla’s so-called Chinese rival, Xpeng Motors, has raised an additional $400 million ahead of its initial public offering in the United States. Other companies like Alibaba and the Qatar Investment Authority have contributed to this according to two unnamed sources, reports CNBC. Abu Dhabi’s sovereign wealth fund Mubadala has also reportedly taken part.
When you take into consideration that the company received $500 million in funding before, it seems that Xpeng Motors has a bright future ahead. This Chinese company could definitely surpass other local competitors like Li Auto and Nio, perhaps even breaking into the foreign electric vehicle market.
This year, Nio’s stock is already up a whopping 239%, while Li Auto has surged 45% after being listed last week. Tesla is up over 237% year to date.
This round of funding is nearly finished, and there could quite possibly be another one worth millions happening sometime in the future. As reported by CNBC, Xpeng Motors filed for a Wall Street listing and is raising capital ahead of an IPO in the United States.
With new laws regarding Chinese trade enacted by the U.S Senate, it could be a little tricky for Xpeng Motors to handle foreign firms trading. Not many other details have been disclosed right now, so we’ll just need to see how it all plays out.
Xpeng Motors started rolling out its P7 Sedan to the public last month. While backed by well-known investors, it’ll be interesting to see how Xpeng is able to compete against the EV benchmark set by Tesla.
A previous report by CNBC’s Jim Cramer claimed the EV bubble is set to burst (aside from Tesla), and with Xpeng able to raise huge sums of investment ahead of its IPO, it seems everybody wants to get on the electric vehicle gravy train and make some money.
