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Exclusive | Chinese Tesla challenger Xpeng tops up on cash from Alibaba and Qatar ahead of New York Stock Exchange IPO

  • Xpeng adds Alibaba and The Qatar Investment Authority to US$800 million in C+ round of funding, says source familiar with the matter
  • Xpeng has filed confidentially for NYSE listing, source says

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Xpeng’s P7 sports sedan model. Photo: SCMP Handout

Alibaba Group and Qatar’s sovereign wealth fund are leading a last-minute financing of Chinese smart electric vehicle start-up, Xpeng Motors, ahead of its initial public offering in New York, according to a person familiar with the matter.

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E-commerce giant Alibaba is adding to its existing investment in Xpeng, one of Tesla’s challengers in China, while The Qatar Investment Authority (QIA) is a first-time backer.

China’s electric car start-ups are tanking up on capital to fuel their fight for market share in the world’s largest car market.
Investors are keen to jump on the bandwagon after watching 17-year-old, California-based Tesla overtake Toyota Motor, Volkswagen and Hyundai Motor this year in terms of combined market value to become the world’s most valuable carmaker.
Tesla’s CEO Elon Musk walks in front of a screen showing an image of Tesla’s Model 3 car in Shanghai on January 7. Photo: Reuters
Tesla’s CEO Elon Musk walks in front of a screen showing an image of Tesla’s Model 3 car in Shanghai on January 7. Photo: Reuters
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The additional US$300 million capital injection swells Xpeng’s C+ round of financing to US$800 million. Xpeng said on July 20 that it had raised US$500 million from investment managers Aspex and Coatue, as well as private equity firms Hillhouse Capital and Sequoia Capital China. Other pre-IPO investors may still pile in.
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