Chinese electric automaker Xpeng Inc XPEV announced Sunday it has received a $587 million funding commitment from a local government entity to set up a new manufacturing facility in Guangzhou.
What Happened: The investment will be made through Guangzhou GET Investment Holdings Company. Xpeng said the new plant could start production by December 2022.
“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,” the Alibaba Group Holding Ltd. BABA-backed company's Chairman and CEO He Xiaopeng said in a statement.
Why Does It Matter: The collaboration with Guangzhou would increase Xpeng's manufacturing capacity. Currently, the EV maker has a wholly-owned plant in Zhaoqing with an annual production capacity of 100,000.
Xpeng debuted on the New York Stock Exchange at the end of August, after raising $1.5 billion in its initial public offering. The company had raised $500 million in a Series C+ funding round ahead of the IPO in July.
On Saturday, at the Beijing Auto Show, Xpeng said it's betting on flying electric vehicles as part of the long-term strategy, CNBC reported.
Price Movement: XPEV shares closed 2.75% higher at $17.93 on Friday.
Photo courtesy: Xpeng Inc.
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