Xpeng Motors today announced the signing of its Series C+ financing, a total of approximately $500 million with a group of investors including Aspex, Coatue, Hillhouse Capital, and Sequoia Capital China.
The completion of this significant amount of financing demonstrates the high level of investor confidence in Xpeng's strategy, market positioning, and its long-term vision as a serious player in the electric vehicle market in China.
Xpeng began customer deliveries of its long-range sports sedan, the P7, less than a month ago, and had 15,000 pre-orders for the vehicle when we spoke to the company in June. It's important to note that those were more like reservations than hard orders with deposits.
The Xpeng P7 is currently the longest-range EV made in China, beating the long-range Tesla Model 3 by 24 miles (38 km). The P7 has an NEDC range rating of 706 km which translates to 438 miles, and the long-range Tesla Model 3 is officially rated at 668 km (414 miles) by the Chinese Ministry of Industry and Information Technology (MIIT).
Gallery: Xpeng P7
China's government policies support New Energy Vehicles and the Smart-EV segment
Despite the overall EV subsidy cuts, Chinese government policies are supportive of high-quality intelligent electric vehicles. Investors interpret that as a sustainable strategy, to support the highest quality and most innovative products. The expectation is that the central and regional governments will accelerate incentives for high-tech vehicles, such as those with advanced driver assist systems (ADAS). Xpeng's XPILOT 3.0 is one of, if not the most advanced ADAS system in China today. We believe that's partially is why Xpeng was able to secure such a large investment even during these uncertain financial times.