The shares of EV (electric vehicle) manufacturer – XPeng, which is supported by internet heavyweight – Alibaba Group Holding Ltd (NYSE:BABA), surged by 41% from its debut on NYSE (New York Stock Exchange). It helped the CEO of XPeng, Xiaopeng, aged 42, to become one of the richest men in the international auto industry.
The ADR of XPeng is priced at $15. Its shares surged on the backdrop of gains in Tesla Inc (NASDAQ:TSLA) and Nio Inc – ADR (NYSE:NIO) amid investors’ belief for a growing market for ADV (autonomous driving vehicles), smart cars, and electric vehicles.
Alibaba owns a stake of 14% in XPeng before IPO. Xiaopeng holds a controlling stake of 31% in the company. Other notable companies that hold investments in XPeng include GGV funds (3.8%), Morningside related funds (4%), and IDG associated funds (6%).
Despite the ongoing coronavirus, XPeng accomplished several milestones in 2020. The company unveiled the P7 Sports Sedan, its second Smart electric vehicle model, in April 2020. It also obtained a manufacturing license for its Guangdong Province based self-built and wholly-owned factory in May 2020.
Raises $900 million
XPeng mobilized funds of $900 million from investors such as Mubadala, The Qatar Investment Authority, a sovereign wealth fund based in Abu Dhabi, Hillhouse Capital, Aspex, Sequoia Capital China, and Coatue.
Fortunes of Xiaopeng at $4.2 billion
In his earlier career, Xiaopeng is a co-founder of the mobile browser business. His net worth now stands at $4.2 billion, considering the valuation of his shares in XPeng as of today.
XPeng focuses on the auto market in China. In 2019, the total sales of passenger vehicles are 21.1 million units. The EV penetration rate in 2019 is 4.2%.
The EV market expects to reach 4.2 million units by 2025 from 2019 by growing annually at 29.4%.
Li Auto debuts on NASDAQ in June 2020
Li Auto, another Chinese company, engages in the manufacture of EVs, debuted on NASDAQ in June 2020. Its shares are scaling high after mobilizing $1 billion. However, the shares of Li Auto plummeted to $19.38 (down by 17) today, but still above the issue price of $11.50.