Chinese Tesla rival Xpeng looks for fresh funding and may try a US IPO


So far, Xpeng Motors has raised $1.3 billion in funding, according to data from Crunchbase, with backers including e-commerce giant Alibaba and Foxconn.

Even though the next round of funding is likely to come from the private markets, He said an initial public offering (IPO) may not be far off.

“Yes, we do have IPO plans. We are open to a listing either overseas or at home in China. We want to focus building our business first before considering the IPO,” He told CNBC.

“The auto industry is capital intensive, and at the same time, has strict requirement for operation and efficiency. We want to focus on getting more orders and delivering the cars this year and next, before we start considering going public.”

He added that while a final location for the public listing has not been decided, and a U.S listing will likely happen before one on the mainland.

“We are on the fence for the U.S. and tech board listing. For Xpeng, we hope to do both. Tech board is a good option. We will keep monitoring it. It is possible that our U.S. listing will happen sooner,” Xiaopeng said.

“Tech board” refers to a Nasdaq-style listing location in Shanghai that is aimed at attracting high-tech companies.

If Xpeng Motors lists in the U.S., it would be following in the footsteps of rival electric vehicle maker NIO, which went public on the New York Stock Exchange last year.

Source : CNBC