Smart car module.
The deal, valued at up to HK$5.8 billion, or about $744 million, will see DiDi (DIDIY) acquire a 3.25% stake in
XPeng
,
According to a company filing on Monday.
XPeng added that it plans to launch a new electric vehicle brand in 2024 as part of a strategic partnership with
Didi
.
The brand is currently being developed under the project name “MONA” and has plans to launch an A-class smart EV model next year. XPeng said DiDi will “provide support from its mobility ecosystem” for the project with access to the nationwide mobility market.
Class A cars are small and compact cars. B-Class cars are slightly larger, and the C-Class is the equivalent of a small family sedan.
XPeng said the new brand will target the mass market segment with a price range of around CNY 150,000, or about $21,000.
XPeng’s American Depositary Receipts (stock ticker: XPEV) rose 5% in pre-market trading Monday to $17.53, while its Hong Kong shares closed with gains of 11%.
Standard & Poor’s 500
And
Nasdaq Composite
Futures rose 0.1% and 0.2%, respectively.
XPeng’s US interest rates, as of Friday’s close, have risen 76% so far in 2023. The company, not the overall market, has been responsible for much of these gains.
Shares of XPeng have risen from about $15 a share to more than $20 a share in the days following an announcement in July of a $700 million investment in the company by 2019.
Volkswagen
(VOW3.Germany). Along with the capital, the couple will develop two electric cars for the Chinese market.
Interest rates have held at less than $18 per share, but are still up about 113% over the past three months despite an acceleration in China’s EV price cuts. The price drop has affected the shares of some other electric vehicle manufacturers over the past few weeks.
BYD
(1211.HK) is the largest manufacturer of battery electric vehicles, or BEVs, in China. Its shares have fallen about 4% over the past three months.
Write to Callum Keown at [email protected]
