He Xiaopeng, CEO of Xpeng, stands next to the company’s P7 electric sedan as he addresses the media at the 2020 Beijing auto show.
Evelyn Cheng | CNBC
GUANGZHOU, China – Electric car maker Xpeng Motors has received a new round of investment from the government of South China’s Guangdong province.
The 500 million yuan ($ 76.9 million) funding from Guangdong Yuecai Investment Holdings Co., the province’s investment arm, will be used to “accelerate the company’s business expansion,” Xpeng said in a statement.
Xpeng is headquartered in Guangzhou, the capital of Guangdong Province. The region is focusing on new energy vehicles and autonomous driving. Warren Buffett-backed electric car maker BYD is based in Shenzhen, the engineering powerhouse in Guangdong. And autonomous driving start-ups such as Pony.ai, WeRide and AutoX are all located in the province.
The investment will help accelerate the “strategic transition of Guangdong’s auto industry,” Xpeng said in a press release.
Since its $ 1.5 billion US IPO in August, Xpeng has continued to raise money to boost growth, ramp up production and compete with domestic rivals as well as Tesla. In September, Xpeng received 4 billion yuan in funding from a branch of the Guangzhou government. In January, the company secured a 12.8 billion yuan credit line from major state banks.
The company has focused on building its manufacturing base with two fully owned factories: one in Zhaoqing and another currently under construction in Guangzhou.
After a big rise in 2020, Xpeng’s shares are under pressure this year, falling about 18% since the start of the year.