After an impressive start to the year, Xpeng Motors saw a dip in sales following major price cuts to the rival Tesla’s Model Y SUV. However, the Chinese company still has a lot going for it, including the support of its own government in the world’s largest auto market.
Xpeng Motors was awarded 500 million yuan ($76.9 million USD) from Guangdong Yuecai Investment Holdings Co., the investment arm of the Southern Chinese province, as reported by CNBC.
The company, which is based out of Guangdong’s capital city of Guangzhou, has consistently raised money since its initial public offering (IPO) in the US in August, and largely kept up with rival Tesla’s sales numbers in recent months within the Chinese market.
The investment from Guangdong provincial government reinforces our commitment to driving #SmartEV transformation with technology and data: https://t.co/utXqXpbLZR #ElectricVehicle pic.twitter.com/Ab3kScBc60
— XPENG (@XPengMotors) March 15, 2021
Xpeng says the investment will “accelerate the company’s business expansion,” which
The Warren Buffett-backed company also began selling a cheaper lithium iron phosphate (LFP) battery option for its P7 sedan earlier this month, which is set to become available in May, according to Xpeng.
Tesla CEO (and now the company’s Technoking) Elon Musk has also lodged criticism against Xpeng in the past, stating that the company’s navigation system was stolen from an older Tesla Autopilot version. The company released its Navigation Guided Pilot beta in January, and many have already pointed out its awkward similarity to Tesla’s Autopilot.
