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China’s Tesla challengers, Xpeng and Li Auto, rev up capital-raising drive as the electric car start-ups target US IPOs
- Xpeng files secretly for US IPO; Hillhouse Capital backing Li Auto’s Nasdaq listing
- China’s passenger car sales recovering after sharp fall in first quarter due to coronavirus pandemic
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China’s electric car start-ups are tanking up on capital to gear up for expansion in the world’s largest car market.
Xpeng Motors has made a confidential filing for a listing in the US, Li Auto is marketing a US$950 million initial public offering on Nasdaq this week while New York-listed NIO shares have tripled so far this year.
Elsewhere, Zhejiang-based carmaker Geely Automobile Holdings, which makes the Geometry A electric car, said it plans to list on Shanghai’s Nasdaq-style Star Market later this year.
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Investors are keen to jump on the electric-vehicle 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 sells its Model 3, Model S and Model X in China.
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Tesla starts delivery of made-in-China cars
Tesla starts delivery of made-in-China cars
China’s government also boosted investors’ confidence by affirming its support for electric vehicle makers during the coronavirus crisis which was followed by a sharp recovery in sales after the slump in February when car showrooms were closed as the virus spread rapidly across the mainland.
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