Xpeng Motors Founder Clears Up Confusion Over CNBC Report of US IPO
Xu Wei
DATE:  Mar 29 2019
/ SOURCE:  yicai
Xpeng Motors Founder Clears Up Confusion Over CNBC Report of US IPO Xpeng Motors Founder Clears Up Confusion Over CNBC Report of US IPO

(Yicai Global) March 28 -- The founder of Tesla rival Xiaopeng Motors Technology has set the record straight after a US broadcaster said the Chinese electric car startup plans to go public in the United States.

He Xiaopeng, who is also the Alibaba-backed company's chief executive, spoke with CNBC yesterday at the annual Boao Forum in China. CNBC reported that He said Xiaopeng Motors "is seeking at least $500 million in funding and separately looking at a public listing, possibly in the United States."

He clarified that he'd meant tech firms usually aim for an initial public offering in the long run, but did not mean his eponymous carmaking business is going to list in the US and never expected to be misunderstood, Chinese state-backed publication The Paper reported today.

The Paper also cited He as saying that cuts in subsidies for new energy vehicles will benefit the Guangzhou-based company. China halved them on March 26. He didn't elaborate on how that would help Xpeng.

When state support is scaled back, new energy vehicle makers generally ease prices to boost sales, which eats into their profit. Few carmakers dare to hike prices. Cuts particularly affect low-end brands, which trim prices and may even be forced from the market. That aids the high-end survivors in the long term.

Because of the subsidy cut, the cost of Xpeng Motors' three models will increase by CNY20,000 (USD2,974) to CNY34,000, the company said on Feb. 1.

Editor: Emmi Laine

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Keywords:   Xpeng Motors,IPO