XPeng is a Chinese automaker that builds battery-electric vehicles, including its flagship G9 SUV. Its vehicles include connectivity and advanced driver‑assistance system software often compared to Tesla’s FSD. Under a new deal with Volkswagen, XPeng will jointly develop and produce two mid‑sized EVs for the Chinese market that carry DNA from both automakers and are based on the G9. The vehicles will be produced at VW’s Hefei development, innovation and procurement center (100%TechCo). Production is expected to begin in 2026. Volkswagen is investing $700 million and acquiring a 4.99% stake in XPeng as part of the agreement. Xpeng is a five-year-old electric vehicle startup led by former Alibaba executive He Xiaopeng that develops models aimed at China’s tech-savvy middle-class. The company has raised multiple rounds totaling about $1.7 billion to date and announced roughly $500 million in a Series C+ round. The Series C+ follows a $400 million Series C closed last November and references a prior August 2018 fundraising event. Xpeng has faced a legal battle with Tesla over alleged theft of Autopilot source code, a case delayed by the COVID-19 pandemic. Sales headwinds in China from reduced government subsidies and pandemic-driven economic weakness pose near-term challenges. In May the company obtained a production license for a fully-owned car plant near its Guangzhou headquarters, reducing dependence on manufacturing partner Haima Automobile. XPeng Motors develops smart, connected electric passenger vehicles, including the G3 SUV and the forthcoming P7 sedan. The company began deliveries of its first production model, the G3, in December and had shipped 10,000 units by mid‑June, later releasing an enhanced G3 with a 520 km NEDC range. XPeng plans to launch its electric P7 sedan in spring 2020, with deliveries expected to begin in the second quarter of 2020. Financially, XPeng raised a $400 million Series C and said it secured "several billions" of Chinese yuan in unsecured credit lines from institutions including China Merchants Bank, China CITIC Bank and HSBC. The company said it has met most of its business and financing targets despite economic headwinds and policy changes affecting Chinese auto sales. XPeng has said it wants to IPO but provided no specific timetable, and its post‑money valuation for the Series C was not disclosed, though a source said it is better than the 25 billion yuan valuation from August 2018. XPENG Motors develops the G3, a high-tech electric SUV featuring a sporty design, shark-shaped front lip, lightsaber LED lights and integrated diamond-matrix taillights. The G3 is equipped with a 360° roof camera, a space-capsule-like cockpit, 20 smart sensors, full-scenario autonomous parking and Level 2.5 autonomous driving technologies tailored for Asia. G3 was scheduled to start official sales later in 2018 with deliveries beginning by the end of the year. The company plans to build 150 supercharging stations nationwide and open dozens of offline stores in first-tier Chinese cities. XPENG maintains R&D, manufacturing and marketing divisions in Beijing, Shanghai, Zhaoqing (Guangdong) and Silicon Valley. Financially, the company has completed a large Series B+ and reports cumulative financing exceeding RMB 10 billion with a valuation close to RMB 25 billion. XPENG Motors designs and manufactures internet-connected electric vehicles, including a Beta model, a production model (1.0) and the XPENG G3 (2.0) all-electric SUV slated for sale in 2018. The company has secured product qualification from China’s Ministry of Industry and Information Technology (July 2017). Headquartered in Guangzhou, XPENG maintains design, R&D, manufacturing, and marketing operations across Beijing, Zhaoqing and Silicon Valley. It reported nearly 1,000 employees with plans to grow to 3,000 by 2019. XPENG is developing the XPENG Motors Intelligent Internet-connected Science and Technology Park (Zhaoqing Base), a 3,000-mu site with a planned RMB 10 billion investment. Financially, the company has raised over RMB 5 billion to date following its most recent funding.

Total raised

$2.9B

Funding rounds

6

Latest round

Equity

Latest activity

Jul 2023