Chinese electric vehicle (EV) startup Xpeng Motors, one of Tesla's rival in the EV market, has filed an initial public offering (IPO) on the New York Stock Exchange (NYSE) after raising funds of almost $400 million dollars of investments last month.
According to Barbara Smith’s report on the website Business Insider, the China-based firm plans to raise about $100 million in funds by also providing the option to buy almost 430 million Class B shares. Class A shares figures or plans however were not revealed.
As CNBC’s Arjun Kharpal reports, the proposed debut of the Chinese firm on the NYSE comes after it has raised more than $400 million worth of funds from different companies such as fellow homegrown company Alibaba, Qatar’s sovereign wealth fund Qatar Investment Authority, and Mubadala.
Citing the tensions between the United States and Mainland China, the company has mentioned under their official filing that it could stand between the crossfires of the two biggest economies in the globe.
As of writing, the company has no market presence in the US but it has two cars they currently offer to their local market – the P7 sedan, a competitor of the Tesla Model 3, and G3 SUV.
The move is seen by experts as a way for the company to gather more funds as it faces tough competition among local players at home. These companies include Nio, Li Auto, and WM Motor.
As for Tesla, it’ll still take a long while before these Chinese players will come close to competing in the US market. Even in the Chinese market, Tesla dominated the sales figures in June and it has been beefing up its presence in the local scene through the construction of a Giga factory in Shanghai as well as hiring additional personnel for a design studio seen to craft cars specifically catered for the Chinese palette.