China's Xpeng gets $600m boost from city government

EV startup lays foundation for a second factory to accelerate production

20200928 Xpeng

Xpeng plans a second factory in Guangzhou that will significantly increase its production capacity. © AP

NIKKI SUN, Nikkei staff writer

HONG KONG -- Xpeng Motors has raised 4 billion yuan ($600 million) from the city government of Guangzhou and laid the foundations for the Chinese electric vehicle startup's second factory in three years.

The government investment underscores the growing ties between the emerging EV startups and the state as China looks to nurture home-grown champions that can challenge Tesla.

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