Become the third shareholder! Volkswagen successfully invested in Xpeng Motors.
On December 6th, it was announced that the cooperation with Volkswagen had completed the equity delivery. The contents of the announcement show that all preconditions contained in the share purchase agreement have been reached, and the investment has been completed on December 6, 2023 according to the terms and conditions of the share purchase agreement. A total of about 94,079,300 Class A ordinary shares (subscription shares) have been successfully allotted and issued to Finance Luxemburg S.A (an affiliate of Volkswagen) at the purchase price of $15 per American depositary share, and the total face value of the subscription shares is $9,407,9255. The 94,079,300 shares of Class A common stock subscribed for this time account for about 4.99% of the total issued and circulating share capital in Xpeng Motors after the completion of the transaction.
In short, Volkswagen exchanged nearly 5 billion for a 4.99% stake in Xpeng Motors. At the same time, it also obtained an observer seat on the board of directors in Xpeng Motors. Regarding Volkswagen’s investment, Xpeng Motors said that the net proceeds from the investment will be used for general company purposes, including meeting the needs of working capital.
Relevant information shows that on July 26, the two sides announced heavy news cooperation to build a car. As part of the strategic cooperation, Volkswagen increased its capital by about 700 million US dollars to Xiaopeng Automobile, acquired about 4.99% equity of Xpeng Motors at a price of 15 US dollars per ADS, and took a seat on the board of directors of Xpeng Motors as an observer. In addition, the two sides also announced plans to jointly develop two Volkswagen brand electric vehicles for the medium-sized car market in China market. These two electric vehicle platforms and software which are exclusively for the China market will be jointly developed. Xpeng Motors is mainly responsible for the vehicle platform, intelligent cockpit and intelligent driving system, while Volkswagen provides the world’s leading engineering and supply chain capabilities. Both models will carry the Volkswagen logo and plan to go to the market in 2026.
In the announcement, Xpeng Motors also revealed the models of cooperation between the two parties, and the feasibility study of the project has achieved positive results and been completed. At the same time, the two sides are actively evaluating deeper strategic cooperation in smart electric vehicle technology. The content of this announcement also means that the cooperation between Xpeng Motors and the public has undergone further qualitative changes.
With the public’s investment of nearly 5 billion yuan, Xpeng Motors’s reserve funds will also be improved. It is worth noting that since the second half of last year, Xpeng Motors has been left behind in the new forces of building cars. Sales are poor and financial losses are increasing. Relevant data show that the cumulative sales volume in Xpeng Motors from January to June this year was 41,400 vehicles, down 39.93% year-on-year, and the net loss in Xpeng Motors in the first half of this year was 5.14 billion yuan. This background has brought great pressure to Xpeng Motors, which made many internal organizational restructuring last year.
At the same time, Xpeng Motors has continuously laid out new products for listing. On June 29th, the G6 model was launched, which won the favor of the market as soon as it was launched, driving the sales volume in Xpeng Motors to increase greatly. In September, Xpeng Motors successively launched 2024 models and 2024 Tucki G9 models. Relevant data show that the latest sales volume of Tucki G9 in October was 4,593 vehicles, and the latest sales volume in October was 8,741 vehicles. With the appearance of several new models, the sales volume in Xpeng Motors has slowly recovered, exceeding 20,000 for two consecutive months. According to the latest official data, Xpeng Motors sold 20,041 vehicles in November.
The official once said: At present, Tucki G6 production capacity has been significantly improved, and the delivery process will be further accelerated. In addition, Tucki, as a heavyweight model in Xpeng Motors, started the pre-sale at the Guangzhou Auto Show on November 17th, with a pre-sale price of 388,000. The official said that the goal of Tucki X9 is to become the first-selling model in the large-scale pure electric MPV market. With the continuous introduction of new models in Xpeng Motors, it will further boost sales in Xpeng Motors.
Returning to cooperation with the public is beneficial to both. After all, Xpeng Motors can get a considerable amount of liquidity, and share the R&D costs equally. Earlier, regarding the cooperation with the public, Xpeng Motors once said that in 2024, Xpeng Motors began to enter the era of technical service income, which was an important turning point in realizing the company’s technology. Cooperation with the public is not a "technical licensing fee", but a "technical service fee". For the public, Tucki’s intelligent technology can be directly used, which can save the cost of technical development again and accelerate the process of electrification transformation.
essayFrom: tram report