New York-listed Xpeng said on Monday that it plans to sell up to 46 million new American depositary shares (ADSs), as the money-losing electric vehicle (EV) startup ramps up funding to pay for expensive technological developments.

Total fundraising from the deal, which includes the sale of 40 million new ADSs and potentially 6 million more in an overallotment option, could reach up to $2.2 billion, based on its latest closing price. The company’ s stock has more than doubled since its August IPO on bullishness about the potential for its EVs in China’s fast-growing market.

The Alibaba-backed company is riding high on favorable comparisons to Tesla between its autonomous driving technology and intelligent operating system. Its batteries also rival Tesla’s on range but at lower cost. The Guangzhou-based company’s recent decision to use lidar — laser for imaging, detection and ranging — in its hardware has been more controversial, since Tesla CEO Elon Musk once called the technology “a fool’s errand” due to cost concerns.

In its statement, Xpeng said it expects to use the net proceeds from the latest fundraising for smart EV and software development, hardware and data technologies, sales and marketing as well as building a super charging network.

Underlining the competitiveness of the smart electric-vehicle market, Xpeng says it also plans to expand internationally and make strategic investments in core EV technologies. Credit Suisse, J.P. Morgan, BofA Securities and Citigroup are acting as joint bookrunners for the deal.

Contact reporter Heather Mowbray (heathermowbray@caixin.com)

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