Chinese Electric Vehicle Company Xpeng Motors Files For NYSE IPO

By Amit Chowdhry ● August 10, 2020
  • Chinese electric vehicle company Xpeng Motors has filed for an initial public offering on the New York Stock Exchange

Chinese electric vehicle company Xpeng Motors has filed for an initial public offering on the New York Stock Exchange, according to an SEC filing via CNBC. Xpeng has not revealed how many Class A ordinary shares it would sell, but the document said that the company is going to sell 429,846,136 class B ordinary shares. The SEC filing says that Xpeng plans to raise $100 million from the IPO, but that is likely just a placeholder that will change later on.

Prior to the IPO filing, Xpeng Motors raised over $2.5 billion in funding. Some of the company’s investors include Alibaba, the Qatar Investment Authority (QIA), and the Abu Dhabi-based sovereign wealth fund Mubadala.

The timing of the IPO is turbulent as there are tensions between the U.S. and Chinese governments. President Trump has been critical of TikTok, an app developed by China-based ByteDance for collecting data on its users. A group of TikTok users also were able to coordinate the tampering of the registration of a Trump rally in Oklahoma, which is believed to have caused a lower-than-expected turnout. There has also been an ongoing trade war between the U.S. and China.

“Although we do not currently export any of our Smart EVs (electric vehicles) to the United States, it is not yet clear what impact these tariff negotiations may have or what further actions the governments may take, and tariffs could potentially impact our raw material prices,” warned Xpeng in the SEC filing.

Some of Xpeng’s competitors include Tesla Motors along with other China-based electric automakers like Li Auto (recently went public in the U.S. as well), Nio, and WM Motor.

Xpeng offers two vehicles: the G3 SUV and P7 sedan. Xpeng started manufacturing the G3 in November 2018 and it delivered 18,741 units to customers as of July 31, 2020. And the P7 started shipping to customers in May 2020 and and 1,966 units have been delivered to customers as of July 31. Next year, Xpeng is planning to launch a third electric sedan.

The company’s revenues were impacted by the pandemic as it had to shut down some of its stores. For the six months ended June 30, Xpeng hit 1 billion yuan (about $142 million) in revenue — which is down from 1.23 billion yuan during the same period last year. The net loss for the period was reduced to 795.8 million yuan from 1.92 billion yuan during the first six months of 2019.