Xiaopeng Motors is a Chinese electric car startup company who are reportedly discussing with Alibaba and other possible investors to raise $600 to $700 million. This new investment would bring Xiaopeng up to a value of about $4 billion. A spokesman from Xiaopeng didn’t comment on any current or future plans for fundraising for the company.
Back in April, the co-founder of the company, He Xiaopeng, said in an interview while at the Boao Forum for Asia that his company is expecting to raise $1.51 billion during this year and it will announce other fundraising plans soon. He also stated future investments will focus on three areas: expanded their team and R&D, supplier partnerships and production base, and finally marketing, sales, and post-sale services. Xiaopeng is expected to grow their team from 700 to 3000 employees by 2019. The company just recently opened a new research center in Mountain View after putting together a US R&D team last year to help develop self-driving vehicles. At the beginning of this year, after four years of existence, they raised $350 million during a Series B round of funding led mostly by Foxconn, IDG, and Alibaba. After they went through their fundraising, Xiaopeng has gathered $750 million from capital markets.
Xiaopeng, who is often compared to Tesla, is expecting to create a lower priced smart car for younger customers within China who can’t afford the pricey Tesla. The automaker is one of many Chinese electric car startup companies that have showed up recently over the years shortly after the Chinese government started handing our special manufacturing permits to assist those making electric vehicles in China.
According to BloombergNEF forecast, nearly half of every new car sold by 2040 will be an electric one. Investors, who have put billions of dollars into Chinese electric car manufacturing, have high expectations and hopes for electric vehicles in China, which is the world’s biggest auto market.
Although, also according to Bloomberg, China may be considering restricting their electric vehicles subsidies sometime next year in hopes of forcing innovation domestically and not just rely on having tax policies dictate market forces.
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