The Chinese EV startup closes another round just two weeks after raising USD 500 million.
Xpeng P7, China's answer to Tesla's model 3. Image credit: Xpeng Motors
This USD 300 million funding was led by e-commerce giant Alibaba with participation from the Qatar Investment Authority (QIA).
This news comes only two weeks after Xpeng raised nearly USD 500 million for its C+ round from Aspex, Coatue, Hillhouse Capital and Sequoia China.
"The process (financing agreement) has basically been completed." A source told Chinese media channel 36kr.
The outbreak of COVID-19 in 2020 has caused a severe setback for the auto industry, which was already suffering a downward trend. With that being said, NEV companies have entered a capital boom phase. With annual sales of 500,000 units, Tesla, the NEV market leader, has seen its value soar, surpassing Toyota to reach USD 270 billion and become the world's highest-valued automaker. On the other hand, the market value of one of Tesla's Chinese rivals, NIO, has soared to above USD 14 billion.
It is also worth noting that China's mighty BATs (Baidu, Alibaba, Tencent) have been investing regularly in EV firms. Alibaba has participated in investment in Xpeng Motors’ A+, B and B+ rounds. Tencent is the second-largest shareholder of NIO and Baidu has been betting on WM Motor in multiple rounds.