Chinese electrical lorry startup Xpeng Inc. raised $1.5 billion through an initial public offering in the U.S. as financier interest in EVs and clean energy overtook issues over escalating tensions in between the U.S. and China.
The automaker, which is headquartered in Guangzhou, China and has workplaces in Silicon Valley and San Diego, stated in a filing that it offered 99.7 million shares for $15 each, raising about $1.5 billion. The car manufacturer had initially planned to offer 85 million show a cost assistance of in between $11 and $13.
Shares of Xpeng started trading Thursday on the New York Stock Exchange under the ticker symbol XPEV.
Xpeng had actually raised a total of $1.7 billion from investors, including Chinese e-commerce giant Alibaba and Xiaomi Corp, prior to its Wall Street launching. In July, the business said it had raised around $500 million in a Series C+ round to more develop electrical automobile designs aimed at China’s tech-savvy middle-class customers.
Moving to the public market offers Xpeng access to a far larger pool of capital, which it will need to compete against a progressively congested EV marketplace in China. Xpeng deals with competition from Li Automobile, Nio, WM Motor and significantly, Tesla, which began producing Model 3 sedans at its brand-new Shanghai factory in December 2019.
Xpeng has 2 electric lorries on the marketplace, the G3 SUV and the P7 sedan. Production of the G3 started in November 2018. As of July 31, Xpeng stated it had provided 18,741 G3 SUVs to clients.
Deliveries of the P7 began in May 2020. The company has provided 1,966 P7 sedans– a direct rival to the Tesla Model 3– since July 31. Xpeng is also planning a 3rd electrical vehicle, which will be another sedan, that will come to market in 2021.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.