Shares of U.S. Listed Tesla Challenger XPeng to be Included in the Shenzhen-Hong Kong ‘Stock Connect Program'

author: Eric Walz   

The Xpeng P5 fastback was launched in Sept 2021. It was the company's third EV.

Electric vehicle startup XPeng Inc announced that its shares will be included in the Shenzhen-Hong Kong Stock Connect Program, which will allow investors in mainland China to buy shares of the company for the first time.

XPeng launched its U.S. IPO in Aug 2020 then followed that with an IPO in Hong Kong in June 2021. At the time, XPeng said listing on the Hong Kong stock exchange would help the company raise $1.8 billion to expand its product line-up and develop new technologies.

XPeng raised $1.5 billion with its U.S. IPO in Aug 2020.

Now with its inclusion in the Shenzhen-Hong Kong Stock Connect Program, XPeng will be able to raise capital from investors in China, giving the electric automaker more broad exposure in the global financial markets.

Under the Stock Connect program, qualified Mainland Chinese investors can access eligible Hong Kong shares, although they are subject to specified daily quotas.

The Stock Connect programs are a collaboration between the Hong Kong, Shanghai and Shenzhen stock exchanges. The Stock Connects allow international and mainland Chinese investors to trade securities in each other's markets through the trading and clearing facilities of the participating exchanges.

The inclusion will help XPeng raise more capital, taking advantage of the strong investor interest in electric vehicle stocks and related companies. The buzz around EV stocks helped make Tesla's the world's most valuable automaker in 2021 with a market cap that topped $1 trillion.

"We are pleased to be included in the Stock Connect programs, which enable qualified Mainland Chinese investors to have direct access to our shares through the Stock Exchanges in the Mainland,"  said Brian Gu, Vice Chairman and President of XPeng. "The inclusion will not only further expand and diversify our investor base but also provide the opportunity for our customers, partners and EV and technology investors in China to participate in our exciting growth story."

Xpeng became the first EV company to achieve a dual-primary listing on both the New York Stock Exchange and the Hong Kong Stock Exchange on July 7, 2021, after its shares began trading in Hong Kong.

XPeng was founded in 2014 and is one of China's hot new EV startups along with rivals NIO Inc. and Li Auto. All three companies are now publicly traded in the U.S. XPeng is backed by Chinese e-commerce giant Alibaba.

XPeng set out to make fully-electric vehicles packed with advanced technology that are more affordable than a Tesla model in China. The company said it was inspired by the rise of Tesla and even studied many of the automaker's open source patents when designing its electric vehicles, which cost roughly half the price for the same level of technology.

XPeng ranked highest among China's new energy vehicle (NEV) startups by annual registrations with a year-on-year increase of 490% in 2021.

In Nov 2021, XPeng unveiled its fourth electric vehicle, the flagship G9 SUV, at the 19th Guangzhou International Automobile Exhibition. The G9 is one of the most advanced electric vehicles designed by Xpeng.

The G9 is XPeng's first full-size electric SUV and was conceived and designed from the outset for both domestic Chinese and international markets as the company continues its expansion outside of its home country of China.

Xpeng's first vehicle was the compact G3 SUV, which launched in 2018. XPeng followed up the G3  with the flagship P7 smart sedan in 2020. The P7 is a strong competitor to Tesla's Model S in China, offering the same level of technology, including autonomous driving capabilities, for around half the price. 

Deliveries of XPeng's third vehicle, the P5 fastback, began in Sept 2021. The P5 was recognized as the world's first production vehicle equipped with automotive-grade lidar technology to support autonomous driving. 

In Oct 2021, XPeng reached a major milestone and celebrated the production of its 100,000th electric vehicle. The 100,000th vehicle was a P7 sedan. It rolled off the assembly line at XPeng's wholly-owned Zhaoqing Smart EV Manufacturing Base. 

XPeng broke ground on the second phase of its Zhaoqing factory last summer, which will eventually help the company double its manufacturing capacity as the company prepares for growth outside of its home country of China.

XPeng's U.S shares are listed on the New York Stock Exchange under the symbol "XPEV". The stock price is up nearly 10% to $40.75 on Wednesday following the announcement of its inclusion in the Hong Kong Stock Connect Program.

Eric Walz

Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.