Alibaba invests in Xpeng Motors

Shanghai (Gasgoo)-It is reported that on Dec. 12, Alibaba, China's Internet giant finished the investment in Xpeng Motors, one of Chinese EV startups, taking up 10% shares of Xpeng Motors. The move signifies that three Chinese internet giants, known as BAT (namely Baidu, Alibaba and Tencent) had all tapped into the intelligent and new energy vehicle sector. Currently, Xpeng Motors confirmed the new round of funding, but declined to expose the details.

It is known that Guangzhou Chengxing Intelligent Power Vehicle Science and Technology Company, the operating entity of Xpeng Motors, now has enlisted Hangzhou Ali Venture Capital Co., Ltd., a subsidiary of Alibaba Group Holding Limited, in its shareholders list.

On August 29, He Xiaopeng, founder of UC web Inc. and former president of Alibaba Mobile Business Group, started to serve as the Chairman of Xpeng Motors. During his inauguration ceremony, He Xiaopeng said they will raise funding around RMB 5 billion (about $756 million) and finish a total financing of RMB 20 billion (about $ 3 billion) during 2018 and 2019. If what He Xiaopeng said will come true, the investment from Alibaba is calculated to be around RMB 2 billion (around $302 million), because Xpeng had already finished fundrasing of approximately RMB 3 billion ($453 million).

Xpeng Motor is invested and founded by a variety of individual investors, such as He Xiaopeng, founder of UCweb Inc., Li Xueling, founder of YY, Fu Sheng, CEO of Cheetah Mobile Inc., Wu Xiaoguang, senior executive of Tencent, etc. as well as a wide range of venture capital institutions and listed companies, such as GAC, BYD, Ford, Delphi, Alibaba, Tencent, Huawei, etc.

In October, Xpeng Motors rolled off its first mass-produced model, the Identity X, which is sold exclusive to geek customers. It is said that the Xpeng 2.0 will go on sale to the public in 2018. What's more, Xpeng Motors started construction of its Zhanqing production base on December 11.