Xpeng has launched a financing spree as the Chinese electric vehicle startup is reportedly preparing for a U.S. initial public offering (IPO).

The Guangzhou-based company, sometimes dubbed as a Tesla wannabe, has raised $400 million from a group of investors including Alibaba, Qatar Investment Authority and Mubadala, CNBC reported Wednesday, citing two sources with knowledge about the deal.

Xpeng’s new funding round comes just weeks after the company announced the $500 million investment from Aspex Management, Sequoia Capital China, Hillhouse Capital and Coatue Management.

In additional to private investment, Xpeng is also eyeing an IPO with media reports revealing that the company has confidentially filed for a listing in New York, but has yet to decide what bourse to list shares on.

In China, many new domestic players are hunting for more capital to finance their business expansion and technology development at a time when U.S. rival Tesla is gaining momentum in the world’s largest auto market by virtue of the popularity of its Shanghai-built Model 3 sedan.

The latest example is loss-making Li Auto, which last week became China’s second electric vehicle startup to go public in the U.S. after Nio’s $1 billion IPO on the New York Stock Exchange in 2018. Five-year-old Li Auto has seen its share price rise about 45% since its trading debut. In its previous stock filing, the company said that it would use the proceeds from the IPO to develop new products and manufacturing facilities.

Lesser-known Zhejiang-based Hozon Auto has also recently announced plans to list on Shanghai’s Nasdaq-style high-tech STAR Market by the end of 2021, irrespective of its lukewarm sales of 16,000 electric cars since its establishment in 2014.

Contact reporter Ding Yi (yiding@caixin.com)

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