Xpeng Pads War Chest With $2 Billion Line Of Credit
One of China’s strongest EV startups gets even stronger.
Xpeng Motors today has announced the finalization of a credit line in the amount of 12.8 billion yuan (~ $1.98 billion US) from three major Chinese financial institutions. The Bank of China, China Construction Bank, and Agricultural Bank of China, all Chinese state-owned, participated in the financing agreement.
Xpeng Motors’ new line of credit arrives after the electric vehicle startup already raised more than $4 billion last year from its IPO on the New York Stock Exchange in August and then a follow-on offering in December.
Xpeng has been moving forward at an incredibly fast pace rapidly following its successful $900 million pre-IPO fundraising and $1.7 billion IPO in August 2020. One of the most impressive developments this year in our eyes was the fact that they have broken ground on their second manufacturing facility.
- In December 2020, the company completed its first public follow-on offering, raising approximately $2.5 billion.
- In November 2020, the Company’s second manufacturing base broke ground in Guangzhou, making it the first Chinese start-up EV maker with two self-owned factories.
- XPeng’s sales & service network has expanded into 58 cities with 116 retail sales stores and 50 service centers.
- The number of XPeng-branded DC-Fast charging stations has expanded to 135 in 50 cities.
- Free DC Fast charging services are provided to XPeng customers at 670 sites across 100 cities.
- Xpeng Motors delivered a total of 27,041 vehicles in 2020 with a fast-growing customer base that has reached over 40,000.
- Xpeng’s third production model – a new electric sedan is slated to begin customer deliveries in 2021. The vehicle will be equipped with lidar and will be the first production electric vehicle in the world to employ Lidar technology.
- In December 2020, Xpeng delivered the first batch of 100 G3 compact SUVs to customers in Norway, representing a milestone for its international business.
Looking ahead, 2021 presents us with exciting opportunities. We believe the strategic collaboration with these leading financial institutions will enable us to further accelerate growth by building upon our core strengths. With our unwavering commitment to technology innovation and customer services, we look forward to bringing a compelling EV experience tailored to our consumers. – He Xiaopeng, Chairman and CEO of Xpeng Motors.
In September of 2020 InsideEVs had the opportunity to be the first news outlet to drive an Xpeng vehicle, the P7 smart-sports sedan, in North America.
While NIO often seems to get the majority of news coverage of Chinese electric vehicle manufacturers, Xpeng has been quietly making great strides and is poised to be a serious player in the industry. The company has already started shipping its G3 compact SUV to Europe, and ultimately has ambitions of becoming a global brand.
Xpeng has delivered over 40,000 vehicles in only two years. The company launched its first vehicle, the G3 compact SUV, in late December 2018. The second offering, the P7 long-range sports sedan was released in July of 2020 and Xpeng now promises a third model will launch in 2021. Three new vehicles in the first three years of customer deliveries is an extremely aggressive timeline for a startup.
So far, Xpeng has delivered. And with its second factory coming online soon, combined with the funding they now have, we suspect Xpeng Motors will make a lot more news in 2021.
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