Xpeng Motors Announces Financing of RMB 4 Billion to Take on Tesla

author: Eric Walz   

BEIJING — Chinese electric vehicle startup XPENG Motors announces the official signing of its Series B round of RMB 4 billion ($584 million) with Primavera Capital Group, Morningside Venture Capital, as well as He Xiaopeng, Chairman and CEO of XPENG Motors, jointly leading the investment. Xiaopeng is the largest individual investor in Xpeng.

Hillhouse Capital, K11 Investment, and Eastern Bell Venture Capital also joined for the first time to support XPENG Motors.

This is the largest single-round of financing in China's new energy vehicle (NEV) industry in 2018. Xpeng is one of several electric vehicle startups in China, including NIO and Byton, that are looking to compete directly with Tesla.

China is leading the world in electric vehicle adoption. EVs will account for 19% of all passenger vehicle sales in China, compared to 14% in Europe and 11% in the US, according to Bloomberg's Electric Vehicles Outlook 2018.

Upon completion of this latest Series B round, XPENG Motors will have raised RMB 6.2 billion ($905 million). Currently, the valuation of XPENG Motors is close to RMB 25 billion ($3.6 billion).

"We will adhere to the path of independent innovation tailored to the China market and Chinese driving habits. Autonomous driving and intelligent connectivity are the core competence of XPENG Motors. Only by continuously creating long-term value for our customers and investors will our company grow bigger and stronger," He Xiaopeng, Chairman and CEO of XPENG Motors said. "XPENG Motors' model G3 will be released within this year and delivery will start from the end of this year. We are confident that we will deliver high-quality intelligent cars with high value-for-money to our customers."

Fred Hu, Chairman of Primavera Capital Group and a world renowned economist said: "XPENG Motors is an important investment for Primavera Capital Group in the new energy vehicle (NEV) sector. We are very much looking forward to partnering with XPENG Motors, and we believe that XPENG Motors has the potential to become the most prominent player in the electric vehicle industry."

"We share He Xiaopeng's insights into the products and customers of the intelligent vehicle era, and believe that XPENG Motors is born with the new intelligent car manufacturing DNA. The rapid development of the company since its inception and its customer-oriented, prudent culture have strengthened our confidence. From Series A+ and B rounds to the current Series B+ round, Morningside Capital has continuously increased our investments into XPENG Motors." said Richard Liu, founding partner of Morningside Capital.

The Xpeng G3 panoramic windshield

Xpeng says is G3 SUV will be available later this year and the vehicle has design elements drawn from Tesla. The company debuted the vehicle at this year's CES show in Las Vegas.

Xpeng's G3 is a high-tech electric SUV. The vehicle has a shark-shaped front lip, lightsaber LED lights and integrated diamond matrix tail lights. The vehicle includes a panoramic windshield, that extends over the front seats, which is similar to the Tesla Model X.

In addition, the G3 is equipped with the industry's first 360 degree roof camera, unique space-capsule-like cockpit, 20 smart sensors, as well as autonomous parking and Level 2.5 autonomous driving technologies tailored specifically to the driving environment in Asia.

G3 is set to start official sales later in 2018 and its detailed specification and price to be announced then. Xpeng expects delivery to start by the end of this year.

XPENG Motors said it will build 150 supercharging stations across the country, and gradually open dozens of offline stores in first-tier cities.

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.