Chinese electric automobile manufacturer Xpeng Motors has increased $400 million before an initial public offering (IPO) in the U.S., two sources knowledgeable about the issue told CNBC.
The Tesla competition was in talks to raise $300 million, CNBC earlier mentioned, but an extra investor has arrived on board, bringing the total to $400 million. This present amount of cash is as addition to $500 million that the company increased last month.
Besides present investors Alibaba and autonomous wealth finance Qatar Investment Authority, Abu Dhabi’s autonomous wealth finance Mubadala has also jumped on board as a portion of their $400 million tranche, both sources said.
Xpeng’s is increasing capital before an IPO from the U.S. It’s confidentially filed to get a record on Wall Street, but hasn’t determined exactly what exchange to record on, sources formerly said.
The company’s IPO would accompany other Chinese electrical carmakers — Nio and Li Auto — that have already recorded in the U.S. and whose share prices have climbed sharply recently. Nio’s stock is upward 239% this season while Li Auto, which recorded last week, has since seen its shares rise 45% since its introduction. Meanwhile, Tesla is over 237% greater year-to-date.
However, Xpeng’s forthcoming list also comes in time of increasing tensions between the U.S. and China that could impact foreign companies trading on Wall Street. In May, the U.S. Senate passed legislation which could increase evaluation on Chinese companies trading on American exchanges and conveys the danger of delistings for many overseas companies.
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