- Chinese electric vehicle company Xpeng Inc (NYSE: XPEV) had some major announcements this week. These are the details.
Chinese electric vehicle company Xpeng Inc (NYSE: XPEV) is preparing to set up a new plant in Guangzhou following a 4 billion yuan (US$587 million) investment from the Guangzhou Economic and Technological Development Zone.
The new plant is expected to begin production by December 2022 and it will expand the company’s production capacity — which is currently at about 100,000 units per year via the plant in Zhaoqing city in Guangdong province.
“With the strong support from the Guangzhou government, we are confident we will execute on our strategic growth initiatives and deliver the highest quality products and services to meet our customers’ needs,” said Xpeng chairman and CEO He Xiaopeng.
Xpeng went public on the New York Stock Exchange in August and it raised $1.5 billion in the IPO. Prior to the IPO, Xpeng had raised about $2.6 billion in venture capital funding as a private company, according to Crunchbase.
In related news, Xpeng also announced over the weekend that the demand for the P7 luxury sedan has been rising. The P7 vehicle is priced at about 229,900 yuan to 349,900 yuan following subsidies. Xpeng noted that the P7 has the longest range of electric car vehicles being sold in China at 706 kilometers.
“In the near term we’re focused on building the momentum in the P7,” explained Brian Gu, vice chairman and president of Xpeng, in an interview with CNBC at the Beijing Auto Show on Saturday.
The stock price of Xpeng is up more than 8% this week.
Disclosure: I have a small amount of Xpeng shares in my portfolio