Xpeng CEO He Xiaopeng stood next to the company’s P7 electric car while speaking to the media at the 2020 Beijing Auto Show.
Evelyn Cheng | CNBC
In July 2020, the local branches of the four banks in the “big five” provided NIO with 10.4 billion yuan in credit for the start-up’s Chinese business in Hefei near Shanghai. According to the announcement of Weilai Automobile, the participants in this transaction include China Construction Bank, Industrial and Commercial Bank of China, Bank of China and Agricultural Bank of China.
Xpeng announced the line of credit following the company’s initial public offering on the New York Stock Exchange in August last year and a follow-up offering in December, raising more than $4 billion.
Since the IPO, the stock price has soared by more than 195%.
Where did the money go?
The startup did not disclose details of the credit terms on Tuesday. An agreement said the agreement will help the Guangzhou-based company expand its manufacturing, sales and service, and other businesses.
Xiaopeng said it started to build a second factory in November. The company said that as of September 30, it had opened 116 retail stores and 50 service centers. Xpeng revealed in September that it is investing in the development of aircraft.
Last year’s total deliveries amounted to 27,041, of which more than half came from the new P7 sedan that began mass delivery in late June. The company added that it delivered 100 G3 SUVs to Norwegian customers in December.
Although overall deliveries have more than doubled from a year ago, Xpeng’s data is still lower than Nio’s more than 43,700 deliveries. NIO’s cars are aimed at the high-end market, while Xiaopeng’s price range is even lower.
In the past two weeks, both companies have announced plans for new cars. NIO is expected to be listed in the first quarter of next year. Xpeng claims that its cars will be delivered later this year.