Chinese electric-vehicle (EV) startup Xpeng Motors Technology has raised $400 million in its latest Series C funding round with consumer-electronics maker Xiaomi joining as a strategic investor, the Guangzhou-based carmaker announced Wednesday.
Xiaomi will further deepen its partnership with Xpeng by “connecting smartphones and smart cars” as part of its overall Internet of Things strategy, said CEO Lei Jun in a comment on the investment, according to a company statement.
In addition to the equity raising, Xpeng has also secured several billion in yuan-denominated unsecured credit lines from China Merchants Bank, China Citic Bank, HSBC, and other banks, the statement said.
As in the company’s two previous funding rounds, Xpeng founder and Chairman He Xiaopeng once again participated as an individual investor.
The carmaker plans to launch its second EV model, the P7 sedan, next spring and start delivery in the second quarter of 2020. The company delivered 10,000 units of its first model, the G3, in June, but the release of a cheaper, improved edition of the vehicle in July — just six months after the original model was launched — prompted a furious response from many customers, who protested outside Xpeng’s offices demanding replacements and refunds.
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