XPeng acquires competitor for over $740M

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【Summary】Chinese electric car giant XPeng has announced that it will acquire the EV subsidiary of ride-hailing platform Didi for over $740 million. This move will enable XPeng to eliminate a potential competitor and gain access to advanced technology. Additionally, XPeng will collaborate with Didi to introduce a new brand of electric vehicles in 2022. The market has responded positively to this news, with XPeng shares rising by almost 13%.

FutureCar Staff Aug 29, 2023 6:21 AM PT

XPeng acquires competitor for over $740M

Chinese electric car company XPeng announced yesterday that it will acquire the electric vehicle subsidiary of ride-hailing platform Didi for over USD 740 million. In addition to this acquisition, XPeng plans to introduce a new brand of vehicles.

XPeng, founded in Guangdong province in 2015, is among the many Chinese startups that have emerged in recent years to capitalize on the growing demand for electric vehicles in the world's largest auto market.

Didi, China's leading car-hailing app, also operates a subsidiary focused on designing electric vehicles. In a filing to the Hong Kong Stock Exchange, XPeng confirmed that it has reached an agreement with Didi to purchase this subsidiary for USD 744 million.

Furthermore, XPeng will collaborate with Didi to launch a new line of electric vehicles in the coming year. This partnership has been well-received by the market, as it allows XPeng to eliminate a potential competitor and gain access to advanced technology. As a result, XPeng shares experienced an increase of nearly 13% yesterday morning.