XPeng: Strategic Investment From Volkswagen Reinforces Its Technology Leadership

XPeng has announced that the company and the Volkswagen Group have entered into a framework agreement on strategic technical collaboration and a share purchase agreement where Volkswagen will subscribe to 4.99% of XPeng’s newly issued Class A ordinary shares for a total consideration of USD 700 million. We view the technology collaboration agreement and the fund-raising activity positively as it reinforces XPeng’s leadership in vehicle electrification and autonomous driving technology.