These companies must accelerate their development to withstand the impact of Tesla’s “localized cyclone”.
Editor’s note: This article is from Tencent Technology, reviewing the commitment.
Recently, the US electric vehicle leader Tesla started production in Shanghai, China. The arrival of Tesla is believed to bring tremendous pressure and development momentum to Chinese electric vehicle companies. These companies must Accelerated development can withstand the impact of Tesla’s “localized cyclone”.
According to the latest news from foreign media, people familiar with the matter said that China’s electric vehicle manufacturer Xiaopeng Automobile, supported by Alibaba Group Holdings Co., Ltd., has raised nearly US$400 million from investors including Xiaomi. Business development provides adequate funding.
According to foreign media reports, the financing took place in the increasingly severe financing environment of Chinese electric vehicle start-ups described by bankers and industry insiders. Although the government has cut subsidies for electric vehicles and plans to phase out subsidies, these start-ups must compete for investment institutions in crowded industries and present compelling arguments for future profitability.
Informed sources said that the latest financing transaction evaluation shows that the electric vehicle company founded by 42-year-old technology entrepreneur He Xiaopeng has a value of nearly 4 billion US dollars, which is higher than the previous round of financing assessment of 25 billion yuan. Renminbi ($3.57 billion).
Informed sources said that the financing was financed by the US dollar. The financing transaction coincided with the Guangzhou-based Xiaopeng Automobile considering listing in the next few years. New York is one of the possible listing locations. One source said that the company is also considering the listing of the Hong Kong Stock Exchange and the Shanghai stock market, similar to the Nasdaq.
One source said that through the shareholder Xiaomi, Xiaopeng will explore more applications of smart phone technology in smart connected cars.
One of the people who asked not to be named said that the $400 million in funding will be used primarily for R&D of autonomous driving and driving software, mass production of G3 electric SUVs and P7 electric cars, branding and Expand the retail network.
For the financing news, Xiaopeng Automobile and Xiaomi Company declined to comment. The source declined to give a name because they are not allowed to talk to the media.
China’s new energy vehicle market is the largest market in the world and has grown rapidly in recent years. But an official of the China Association of Automobile Manufacturers warned that the number of new energy vehicles sold in China this year may be less than in 2018, after sales of new energy vehicles fell by 46% in October.
Some of the changes that have plagued electric car companies to achieve profitability have also kept investors alert.
According to foreign media reports, Foxconn Technology Group and China’s local venture capital firm Gaochun Capital are also shareholders of Xiaopeng Automobile. In China’s electric vehicle market, Xiaopeng is one of several Chinese start-ups that are accelerating battery technology development and competing with global leaders including Tesla.
The recent commissioning of Tesla’s Shanghai plant is believed to put more pressure on Chinese domestic competitors and also drive the development of China’s electric vehicle market. Tesla has significant advantages in brand awareness, autonomous driving technology, and electric vehicle battery, motor drive, and performance. As production gradually increases, the industry believes that Tesla will gradually reduce prices and expand its share in the Chinese market, which means that Chinese local electric vehicle companies need to develop their own development plans before the Tesla Shanghai plant gradually reaches capacity. Speed up to get a place.