Tesla's Chinese rival Xpeng Motors said the Guangzhou Development Zone Management Committee has agreed to provide it with 4 billion yuan in financing to help it establish a manufacturing base in Guangzhou and fuel its expansion.
In a statement posted on its official WeChat account, Xpeng said the manufacturing facility will greatly increase the company's production capacity.
Xpeng said the Guangzhou production base, which is scheduled to be up and running by the end of 2022, will have five process workshops, including stamping, welding, painting, final assembly and packaging, which will be used for the development of its new models and the production and sales of its vehicles.
Xpeng releases its first flying car, which could cost as much as a luxury car
On August 28, Xpeng listed on the New York Stock Exchange under the symbol XPEV, becoming the third Chinese new energy vehicle maker to list on the US stock market after NIO and Li Auto.
At the offering price, Xpeng is valued at more than $10.8 billion.
Like other new-energy vehicle startups, Xpeng is still losing money.
For the six months ended June 30, Xpeng reported a net loss of $113 million, or nearly 80 percent of the company's revenue ($142 million) for the same period.
Xpeng currently has two production models, the SUV Xpeng G3 with 18,741 units delivered as of July 31, and the sedan Xpeng P7 with 1,966 units shipped as of July 31, starting with deliveries in May.
Xpeng shares went up by more than 6 percent in pre-market trading on Monday.
Xpeng shares up by over 6% after JP Morgan initiates coverage at 'buy' rating
