WM Motor Raises $1.5B Amid China's Electric Vehicle Frenzy

WM Motor Technology Group Co. Ltd is the latest company to benefit from the increased popularity of the electric vehicle segment with the investors in China.

WM Motors raised around $1.47 billion (RMB 10 billion) in a Series D financing round, it announced Monday. WM Motor is backed by the Chinese technology giant Baidu Inc BIDU.

What Happened: WM Motor’s latest round of financing saw participation from Shanghai’s state-owned asset regulator’s investment firms and the Chinese state-owned automotive designing and manufacturing company SAIC Motor.

Capital raised from investors would be deployed for developing intelligent vehicle technologies and to enhance sales channels, according to Reuters.

"The completion of the D round of financing reflects investor optimism about the prospects of the smart new energy vehicle industry, as well as their recognition of WM Motor’s long term development strategy, outstanding core team and industry-leading, cutting-edge technology,” the company's founder Freeman Shan said in a statement.

Why Does It Matter: Chinese electric vehicle manufacturers are seeing rising interests, with two such companies going public in the United States in recent months. 

Li Auto Inc LI raised $1.1 billion in its initial public offering in late July. Xpeng Inc XPEV realized $1.5 billion in its IPO in August.

Nio Inc. NIO, a lead EV player in China, said last month it planned to expand to global markets in a bid to directly compete with Tesla Inc. TSLA for market share.

Price Movement: Although Baidu stock witnessed marginal movements during the day, it traded flat at $124.65 at the end of extended trading hours.

Photo courtesy: WM Motor Technology Co. Ltd.