China’s Xpeng Motors, an electric vehicle start-up plans to raise funds in a fresh funding round this year and is hopeful that it will be comparable to the amount it raised in its previous bout.
Electric vehicle performance has not been so great for publicly listed electric vehicles and investor sentiment is therefore not so very buoyant, said the president of Xpeng. However, he was quick to retort that top companies in this field were an exception as far as investor sentiment was concerned. It was only the companies who did not have their product ready as yet that would be facing the impact of the dampening investor sentiment.
The electric vehicle segment had received huge impetus in China from the government in the form of subsidies and Xpeng aimed to attain a most favorable position in this context. Deliveries of their G3 SUV had begun and the company planned to bring forth a coupe named P7. The focus of the Chinese automaker was to hike its production number and delivery targets. It had earlier set a 10,000 unit delivery goal for July. President, Brian Gu had told CNBC that they were on track to achieve their aforesaid goal.
The electric vehicle manufacturing segment was highly capital intensive and therefore CEO He Xiaopeng said that the need was felt for seeking additional funds amounting to a minimum $500 million or so. The president of Xpeng disclosed that the previous year their company had obtained about $600 million funds in a B Plus round and this year too he was optimistic that they would be able to raise funds as per their expectation. However, the final amount and size of the funding round was subject to some modification.
US electric vehicle maker Tesla shares had dropped by 37% year-to-date and another Chinese electric vehicle company NIO listed on the US exchange witnessed a dip in its share price by almost 60%.