Tesla's Chinese Competitor Raises $400M

Chinese electric vehicles maker Xiaopeng Motors has raised $400 million in a Series C funding round, the company said in a statement on Tuesday.

What Happened

Xiaopeng Motors, better known as Xpeng, said it raised money from both corporate and individual investors, including electronics manufacturer Xiaomi Corporation XIACF.

Xiaomi, whose CEO and co-founder Lei Jun was one of the angel investors in Xpeng, will also serve as a strategic advisor to the startup.

“Xiaomi Corporation and Xpeng Motors have achieved significant progress through in-depth collaboration in developing technologies connecting smart phones and smart cars,” Lei said in a statement.

“We believe that this strategic investment will further deepen our partnership with Xpeng in advancing innovation for intelligent hardware and the Internet of Things.”

Previous Rounds

Xpeng previously raised $314 million from China’s e-commerce giant Alibaba Group Holding Ltd. BABA and Taiwan-based electronics maker Foxconn Technology Group HNHPF in January 2018, the Wall Street Journal reported at the time.

The Tesla Inc TSLA competitor raised another $570 million in Series B funding in August 2018 from multiple investment firms, including China’s Hillhouse Capital.

What’s Next

Xpeng unveiled its first model G3 SUV in November 2018, in a price range of $28,500 to $40,000, not including the subsidies granted by the Chinese government for environment-friendly vehicles.

The company’s second model P7 was announced in April. It will start delivering the car orders in the second quarter of 2020, according to the South China Morning Post.