Shares of Chinese electrical-automotive maker Xpeng (NYSE:XPEV) had been buying and selling increased on Tuesday, after the corporate stated that it has secured a brand fresh $2 billion credit ranking line to support it enlarge manufacturing and sales.
As of 1: 45 p.m. EST, Xpeng’s American depositary shares had been up about 16.1% from Monday’s closing impress.
Xpeng stated on Tuesday morning that it has secured a brand fresh credit ranking line of 12.8 billion yuan (about $2 billion) from 5 Chinese banks. The company stated that it plans to make use of the credit ranking line to lend a hand the “growth of its manufacturing, sales, and restore capabilities.”
Xpeng, which opened its first manufacturing facility closing June, broke ground on a 2d plant in Guangzhou in November. The company started constructing its P7 sedan in that first manufacturing facility closing year; its first model, the G3 SUV, has been built beneath contract in a plant owned by established automaker Haima since 2019. Xpeng plans to be capable to add a third model, one other sedan, by the head of 2021.
Xpeng is expanding hasty. The company opened its first manufacturing facility closing June and is already constructing a 2d. Image supply: Xpeng.
In a commentary, CEO He Xiaopeng stated that the deal helps to diversify Xpeng’s funding channels. The company raised $1.7 billion in its August 2020 initial public providing and $2.5 billion more in a secondary stock providing in December.
For auto traders, this pass clearly bolsters Xpeng’s stability sheet in a style that would not dilute existing shareholders and would not necessarily incur excessive prices. We are going to be taught more about Xpeng’s plans for the fresh credit ranking line when it reports its fourth-quarter and whole-year 2020 results next month.
John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>