Chinese language electric-vehicle maker Xpeng Inc. has signed an settlement with banks for a 12.eight billion yuan ($2 billion) line of credit score.
Agricultural Financial institution of China Ltd., Financial institution of China Ltd., China Building Financial institution Corp., China Citic Financial institution Corp. and Guangzhou Rural Business Financial institution Co. will present the services to help Xpeng’s enterprise and assist develop its manufacturing, gross sales and repair capabilities, the corporate stated in a press release Tuesday.
Like different Chinese language EV makers Nio Inc. and Li Auto Inc., Xpeng has captured traders’ creativeness. Its shares, offered for $15 within the U.S. in August final 12 months, are at present buying and selling at $44.36. It raised $900 million earlier than its preliminary public providing and $1.7 billion throughout its share sale.
Final month, Xpeng additional replenished its coffers, elevating $2.5 billion in its first follow-on public providing by promoting American depositary shares at $45 apiece. Its backers embody Alibaba Group Holding Ltd. and Hillhouse Capital Administration Ltd.
Netting $5.1 billion and now one other $2 billion in credit score strains in such quick order additionally reveals how expensive making electrical automobiles could be. Rival Nio seemed to be operating out of money 12 months in the past having spent closely on advertising and marketing and splashy showrooms.
That was earlier than a $1 billion funding in April from entities led by the municipal authorities of Hefei and a later $1.5 billion credit score line from Chinese language banks. On Monday in New York, its shares touched a report excessive having soared 1,112.44 % in 2020. Nio is now within the strategy of pricing a $1.three billion two-part sale of convertible notes.
Xpeng isn’t wherever close to as profitable as market chief Tesla Inc., which makes automobiles within the U.S. and China and is quickly opening a manufacturing unit close to Berlin. Nonetheless, it broke floor on its second manfacturing base in Guangzhou in November and has expanded its bodily gross sales community to 58 cities and 50 service facilities in China.
The corporate has additionally grown its Xpeng-branded supercharging stations to 135 and supplies free charging providers at 670 stations throughout 100 Chinese language cities. It offered 27,041 automobiles final 12 months versus Nio’s 43,728 autos. Xpeng’s third mannequin, an all-electric sedan, will launch later this 12 months. In December, it delivered the primary batch of 100 electrical SUVs to clients in Norway, a milestone for its worldwide enterprise.
Electrical autos are nonetheless a small phase of the market general in China. Retail gross sales of automobiles, SUVs and multiple-purpose autos totaled 19.6 million models in 2020, the China Passenger Automobile Affiliation stated Monday. That’s down 6.eight % on 2019’s figures however is a smaller drop than in earlier years as authorities incentives and demand for EVs assist the trade shake off a few of the coronavirus fallout.