Tesla challenger Xpeng to get US$587 million from Guangzhou government to power growth, build new factory

Xpeng Motors is building a new plant in Guangzhou which is expected to start production by December 2022

China’s electric car start-ups are on a roll this year, in part boosted by Tesla’s spectacular stock price performance

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He Xiaopeng, chairman and chief executive of Xpeng, said funding from the Guangzhou government will help the carmaker ramp up its expansion plans. Photo: Simon Song

Published: 1:30pm, 28 Sep 2020Updated: 8:25pm, 28 Sep 2020

Chinese electric car start-up Xpeng Motors is building a new plant in the southern city of Guangzhou with investment from the local government, as the Tesla challenger flush with capital after its recent New York listing eyes expansion in the mainland.

The carmaker will receive 4 billion yuan (US$587 million) in financing from the Guangzhou Economic and Technological Development Zone for the factory as well as its future growth, the company said in a statement on Monday.

The Guangzhou government entity’s share of investment in the new plant, which is expected to start production by December 2022, is 1.3 billion yuan.

This will significantly expand the company’s production capacity, currently at 100,000 units per year driven by its plant in Zhaoqing city in Guangdong province, according to the statement.

Xpeng and Guangzhou Economic and Technological Development Zone officials at the ground breaking ceremony for the electric carmaker’s new plant in Guangzhou, on Monday. Photo: Handout

“With the strong support from the Guangzhou government, we are confident we will execute on our strategic growth initiatives and deliver the highest quality products and services to meet our customers’ needs,” said He Xiaopeng, chairman and chief executive of Xpeng.

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