Tesla rival Xpeng Motors raises $500m in funding round

The $500m funding came from a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China.

In its latest round in November, it managed to raise $400m from investors that included Chinese smartphone maker Xiaomi.

This month, Xpeng Motors started deliveries of its new P7 sedan — which is seen as a competitor to Tesla’s Model 3.

The funding round comes after months of turmoil in the Chinese car market as sales of new energy vehicles fell 33.1% year-on-year in June, according to data from the China Association of Automobile Manufacturers.

Nevertheless, there were already signs of a rebound from the crisis and subsequent fall in demand caused by the coronavirus pandemic.