By Sherry Qin
XPeng’s shares rose sharply in Hong Kong after the electric-vehicle maker introduced a strategic partnership with ride-hailing large DiDi Global.
XPeng’s Hong Kong-listed shares rose 14% to 74.45 Hong Kong {dollars} (US$9.49), taking its year-to-date beneficial properties to 94%.
XPeng will purchase Didi’s sensible auto growth enterprise property for five.835 billion Hong Kong {dollars} (US$744 million), it stated in an alternate submitting on Monday. It will situation Class A extraordinary shares at HK$64.03 per share to Didi, representing 3.25% of the corporate’s excellent shares.
XPeng goals to speed up the adoption of sensible EVs and applied sciences within the mass-market phase. It plans to launch an A-class sensible EV mannequin underneath a brand new model in 2024 underneath the partnership with DiDi, at the moment dubbed “MONA.” Didi will present help from its mobility ecosystem because of its entry to a nationwide shared mobility market. The new model will probably be differentiated from XPeng’s foremost model and can “pave the way for the company to build highly popular Smart EV models for the mass-market segment in the RMB150,000 [US$$20,575] price range,” XPeng stated in a press launch.
XPeng turns into “the first automotive manufacturing company will full support from the ecosystem of DiDi,” it stated. The two events plan to discover cooperation in areas together with advertising and marketing and robotaxis in addition to monetary and insurance coverage companies.
Beijing-based Didi is a homegrown ride-hailing large that took over Uber’s enterprise in China in 2016. It delisted from the New York inventory alternate in 2021, shortly after its highly-anticipated preliminary public providing after Beijing initiated a wave of tech crackdown and probed into the safety of its knowledge.
XPeng reported a wider-than-expected web lack of CNY2.8 billion within the second quarter because the EV maker struggles amid weak consumption and intensified worth competitors in China.
Write to Sherry Qin at sherry.qin@wsj.com
Source web site: www.marketwatch.com
