Chinese language electrical automobile maker Xpeng Inc.’s (NYSE: XPEV) CEO He Xiaopeng mentioned he purchased shares in rival startup Nio Restricted (NYSE: NIO) in the course of the latter’s hardest time in 2019, cnEVpost reported Monday.
What Occurred: The report quoted Xiaopeng as saying in an interview with CCTV that he bought Nio inventory in 2019 regardless of the opposition of his pals. The CEO additionally mentioned he invested a complete of $300 million in Xpeng at the moment. cnEV submit is a China-focused EV web site.
Xiaopeng reportedly mentioned he backed Nio as a result of the failure of firms like Xpeng and Nio would create an enormous drawback for the group of electrical automobile firms in China.
Shares of Nio had fallen to as little as $1.19 in 2019, the worst yr for the corporate, however rebounded in 2020 and rose to as excessive as about $67. Xiaopeng and others who invested in Nio in 2019 additionally gained massively from the corporate’s inventory surge.
Nio unveiled its first-ever sedan, named ET7, on the Nio Day occasion held in January this yr. The corporate is taking intention at high-end rivals with the expertise, efficiency and consumer expertise options it introduced.
See Additionally: Nio’s Li: New ET7 Takes Goal At BMW, Mercedes-Benz, Audi And Perhaps Even Apple, However Not Tesla
Why It Issues: Homebred Chinese language firms comparable to Xpeng, Nio and Li Auto Inc. (NASDAQ: LI) in addition to U.S.-based Tesla Inc. (NASDAQ: TSLA) are vying for a bit of the profitable Chinese language EV market, which is the world’s largest.
Tesla Inc’s Mannequin 3 and Mannequin Y had been among the many prime autos by gross sales in China in February, in response to knowledge launched by China Passenger Automotive Affiliation.
Chinese language firms, together with Nio, Li Auto and Xpeng, at the moment are engaged on growing new electrical automobile applied sciences, together with ultra-fast charging, next-generation computing platforms and autonomous driving applied sciences.
Nio has additionally launched modern schemes comparable to Battery-as-a-Service and Autonomous Driving-as-a-Service that cut back prices for purchasers.
Value Motion: Xpeng shares closed 0.6% increased on Monday at $35.37, however declined virtually 0.3% within the after-hours session. Nio shares closed 1.3% decrease at $44.93 and additional declined virtually 0.8% within the after-hours session.
Learn Subsequent: Xpeng Secures $78M Funding From A Chinese language Provincial Authorities
Photograph: Courtesy of Nio
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