Shares of Xpeng Motors soared after it agreed to buy Didi Chuxing’s smart car development unit, a deal that not only eliminates a potential competitor in the crowded electric vehicle market but also gives it a tech-savvy entry into the new car market. Partner. adventure.
The all-stock deal, worth HK$5.84 billion ($744 million), would give Didi a 3.25 percent stake in Xpeng Motors, according to an exchange filing on Monday. Xpeng shares soared more than 16% in Hong Kong trade before paring gains to close 11% higher. Its American depositary receipts rose 5% as of 4:27 a.m. in New York.
As part of the deal, Xpeng Motors plans to launch a new electric vehicle brand with Didi in 2024. Dubbed the “MONA” project, the cars will target the mass market and cost around 150,000 yuan (about $20,000).The partnership comes just over a month after Xpeng Motors raised $700 million in financing invest Increased competition from German auto giant Volkswagen AG against the likes of Nio, BYD and Tesla will help ease investor concerns about weak sales.
Xpeng Motors, which has invested heavily in self-driving features, said it would explore cooperation with Didi in fleet management, marketing, insurance, charging facilities, robotaxis and international markets.
For Didi, the deal marks a retreat From the car manufacturing business, it was once considered a potential growth driver for online car-hailing companies.
Chinese tech leaders including Didi and Xiaomi have been trying to get in on the capital-intensive electric vehicle boom, hoping to make cars “smarter” with autonomous driving and other personalized interactive features.However already overcrowded Competition in the market makes it more difficult for latecomers to obtain production licenses and gain market share.
Didi, once hailed as a national champion in driving Uber Technologies Inc out of China, was kicked out of the main New York exchange after Chinese regulators launched an investigation into its data security. The company is gradually resuming the expansion of its ride-hailing business.
Investors have been counting on Didi to get out of the restricted area. More than a year after the Chinese ride-hailing company withdrew from the New York Stock Exchange in the wake of Beijing’s tech crackdown, its market value has reached about $15 billion. That’s larger than any other company quoted primarily over the counter in the U.S., and even puts it in the top tier of New York Stock Exchange-listed American Depositary Receipts, according to data compiled by Bloomberg.
Nine-year-old Xiaopeng just reported Quarterly loss beat expectations Because it’s trying to increase deliveries. The company’s falling sales and weak profit margins have sparked investor concerns and forced it to delay plans to go public. profit target And rectify internal management.
According to the agreement, if Xiaopeng Motors delivers 100,000 vehicles for two consecutive years, Didi Chuxing will increase its stake in Xiaopeng Motors to 5%.
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