Chinese government grants Xpeng Motors $76m investment

Chinese EV carmarker Xpeng Motors received $76.9m in funding from Guangdong Yuecai Investment Holdings which is the investment arm of the Chinese province whose name it carries.

Xpeng is headquartered in Guangzhou, the capital of Guangdong province and the region is focused on boosting autonomous driving and new energy vehicles.

The money will be used to “accelerate the company’s business expansion” and “accelerate the industry’s transition in Guangdong”, the company said in a statement.

Since its $1.5bn US IPO in August, Xpeng has continued to raise money to fuel its growth, ramp up production and battle against domestic rivals as well as Tesla.

The investment will help to accelerate the “automobile industry’s strategic transition in Guangdong,” Xpeng said in a press release.

The funding comes after another round in September 2020, when Xpeng received 4bn yuan in financing from an arm of the Guangzhou government. In January, the company secured a credit line of 12.8bn yuan from major state-owned banks.