Xpeng CEO He Xiaopeng stands subsequent to the corporate’s P7 electrical sedan as he addresses media on the 2020 Beijing auto present.
Evelyn Cheng | CNBC
In July 2020, native branches for 4 of the “massive 5” banks prolonged 10.four billion yuan in credit score to Nio for the start-up’s China operations primarily based within the metropolis of Hefei close to Shanghai. Individuals on this deal included China Building Financial institution, Industrial and Industrial Financial institution of China, Financial institution of China and Agricultural Financial institution of China, in response to an announcement from Nio.
In China’s state-dominated system, the banks want to lend to state-owned enterprises. That makes it troublesome for privately owned corporations to get financing, until they will persuade the state-owned banks of their capacity to repay loans.
Xpeng’s credit score line announcement comes after the corporate raised greater than $four billion final yr in its preliminary public providing on the New York Inventory Alternate in August and a follow-on providing in December.
Shares have soared greater than 195% because the IPO.
The beginning-up didn’t disclose particulars on credit score phrases Tuesday. The settlement will assist the Guangzhou-based firm broaden its manufacturing, gross sales and providers and different operations, in response to a launch.
Xpeng mentioned it started constructing a second manufacturing unit in November. The corporate mentioned it has opened 116 retail storefronts and 50 service facilities, as of Sept. 30. And Xpeng revealed in September it’s investing within the improvement of flying autos.
Deliveries totaled 27,041 final yr, with greater than half coming from a brand new P7 sedan that started mass deliveries in late June. The corporate added it delivered 100 items of its G3 SUV to prospects in Norway in December.
Though total deliveries greater than doubled from a yr in the past, Xpeng’s figures fell wanting Nio’s greater than 43,700 deliveries. Nio’s autos have focused the upper finish of the market, whereas Xpeng’s value vary has been decrease.
Within the final two weeks, each corporations introduced plans for brand new sedans. Nio’s is predicted to reach within the first quarter of subsequent yr. Xpeng claims its sedan will start deliveries later this yr.