The Xpeng manufacturing facility in Guangzhou is taking shape. The Chinese electric car maker has received funding in the order of $ 590 million from the Guangzhou GET Investment Fund, which will allow it to build its new center, which will also house its research and development center.
After the Wall Street IPO in late August, which enabled it to raise more than $ 1.5 billion, Xpeng will focus on setting up these new manufacturing units that will accelerate its operations. Xpeng has two models in production (an SUV and a sedan), and a third is in preparation.
Xpeng will not own the factory
A statement released on Sunday, September 27, stated that startup Xpeng will not own the Guangzhou plant for at least seven years. Essentially, the Chinese investor in question will lease the housing to a subsidiary of the manufacturer, and when the lease expires, Xpeng will purchase the facility. Commissioning is planned for December 2022.
Currently, the only production unit is in Zhaoqing City. But with that he can already produce his copies. The G3 SUV has already produced 20,000 units since November 2018. The P7 sedan exceeded 2,000 copies at the end of August.
We are far from Tesla’s marketing numbers, but things are accelerating. Especially since Xpeng has just launched its first batch of 100 cars in Europe, a continent where the company is looking to quickly settle.
It is still difficult for the United States to know if any future prospects are possible. Business decisions made under the Trump administration shouldn’t be good news given what happens to the next president to be named head of state.
In the meantime, Xpeng has already established itself on the territory. Offices were set up in Silicon Valley among the 3,600 employees. At the IPO price of $ 15, Xpeng’s share price is already at $ 19. 99.7 million stocks were issued on Wall Street.
Nikolas hard blow
Xpeng operates in a booming market, but the recent bad mood from competitor Nikola shouldn’t be going in the right direction for the next several months. The American startup, which relied on electric and hydrogen pickups and trucks, experienced the worst episodes in its history with the disclosure of a special trick in a promotional video released a few years ago.
A big blow to investors who will be all the more vigilant in the future. In the Xpeng file, for example, there are allegations that Tesla stole the source code of its autopilot.