Posted: August 27, 2020
Interest in electric vehicle stocks has been on the rise, buoyed largely by the success of Tesla’s China made Model 3s in 2020.
Following Nio and Li Auto, Chinese electric car manufacturer Xpeng has announced an IPO filing in the US aiming to raise about US$1.1 billion from a series of high profile investors. And the list of potential investors does not throw up any surprises with a few of them being Tesla shareholders or former Tesla investors.
Tesla shareholder Primecap Management Company is looking at investing a US$ 100 million shares in the Xpeng IPO. Another US$100 million subscription is expected from US hedge fund Coatue, which sold its interest in Tesla in 2017.
Rising interest in EV manufacturing will likely improve investor appetite in the capital-challenged EV supply chain. But it hasn’t happened. Not yet.