Shares of Tesla rival Xpeng Motors rose 41 on its first day of trading on the NYSE. The Chinese smart electric vehicle (EV) maker had priced its IPO at $15 per share. According to Xpeng’s website, it strives to “transform smart electric vehicles with technology and data, shaping the mobility experience of the future.”
What is Xpeng Motors?
Xpeng Motors, which was established in 2014, is considered to be a popular alternative to Tesla in China. Xpeng develops, manufactures, and markets EVs for domestic consumption. The company’s current CEO is He Xiaopeng. Xpeng has sold more than 20,000 electric vehicles, which includes G3 SUV and P7 sedans. The company builds cars in two factories located in China.
In a regulatory filing, Xpeng said that the revenue from vehicle sales in the first six months of 2020 declined to $129.3 million from $173.2 million in the same period last year. The deliveries also fell to 5,499 Smart EV units from 7,165 units.
When was Xpeng's IPO date?
Xpeng shares started trading on the NYSE on Aug. 27 under the ticker “XPEV.” The IPO will likely close on Aug. 31. The EV manufacturer announced that it sold about 99.7 million shares for $15 per share. Initially, the company planned to sell about 85 million shares priced in the range of $11 – $13. The increase was due to the strong demand for the offering.
The Guangzhou-based automaker raised about $1.5 billion in the IPO, which was an increase from $1.1 billion planned earlier. Also, underwriters have a 30-day option to buy 15 million additional common shares. BofA Securities, J.P. Morgan, and Credit Suisse are the joint bookrunners on the deal. Right now, Xpeng has a market value of over $8.5 billion.
Xpeng shares started trading on the NYSE
On Aug. 27, shares of Xpeng Motors started trading on the NYSE exchange. The stock is trading under the ticker symbol “XPEV.” The stock opened for trading at $23.10, up 54 percent from the IPO price.
What is Xpeng's stock price now?
Xpeng stock was up about 10.2 percent at $23.39 in pre-market trading on Aug. 28. The stock rose 41.5 percent on Aug. 27 and closed at $21.22. Xpeng stock hit $25 on Aug. 27, up 67 percent from the IPO price.
Xpeng is the latest Chinese EV manufacturer to launch a public offering in the U.S. to raise fresh capital to compete with Tesla in China. In September 2018, NIO raised about $1 billion in its IPO. NIO is Xpeng’s biggest competitor in China. In 2020, NIO's stock price has surged sevenfold, which suggests strong interest from investors in EV companies.