China’s electric vehicle startup Xpeng closes a $500 million in Series C+ funding.
Investing firms and bodies include but are not limited to Coatue, Aspex, Sequoia Capital China, and Hillhouse Capital.
PAST / CONTROVERSIAL HISTORY
Founded in 2014 by Henry Xia (Xia Heng) and He Tao, Xpeng launched its first production model, the Xpeng G3 SUV, in December 2018 and has since launched a model, the P7.
In 2019, Cao Guangzhi, an employee of Xpeng who had just left Tesla was accused of intellectual property infringement of its Autopilot source code.
In response to Tesla’s accusation, Xpeng calls Tesla a bully. The former using a subpoena, requested that Xpeng should provide source code and computer images to prove them wrong. Coronavirus pandemic has delayed further escalation of the case.
THE CHINESE GOVERNMENT FACTOR
It’s no doubt that the Chinese government is pushing all electric vehicle makers in China to be successful, by providing never-ending subsidies.
Earlier this year, The government of China set new policies known as the new energy vehicle and tax break policies that are hoped will help boost the electric vehicle market. The policies are expected to end sometime in 2022.
The government of China also boosted the charging infrastructure in the country by injecting billions of yuan into the electric vehicle market. These funds should help build more electric vehicle charging stations, as well as battery swapping stations for the NIO like electric vehicles that use the battery swapping technology.
China’s strong stance on moving towards a sustainable future, and China’s energy initiatives and policies that help electric vehicle markers has helped boost the competition and encouraged several electric startups.
This funding is a series C+ funding that followed the previous series C funding of $400 million that was closed in November 2019.
Xpeng has now successfully raised a total of $1.7 billion through several series of funding. This should give the company a solid head start in their quest to conquer the EV car company’s world, and help them grab enough market share in the EV space so as to become a profitable company.
How Xpeng plans to take on Chinese rivals such as NIO and Byton among others, is left to be seen. Tesla and NIO are already trading closer to their last week All-Time-High and have both grabbed enough slices of the national cake.
It is very encouraging though to see more electric vehicle startups raising funds that will help them build a solid foundation in the electric vehicle market, in order to help us transition into a sustainable future, sustainably.