As part of the deal, Xpeng plans to launch a new EV brand in partnership with Didi in 2024. Dubbed Project “MONA,” the cars will target the mass market segment with a price tag of around 150,000 yuan — or about $27,912.35. The partnership comes just over a month after Xpeng received a US$700 million ($950.1 million) investment from German auto giant Volkswagen AG to jointly develop EVs for the Chinese market — and should help ease investor concerns about sluggish sales in the face of intensifying competition from the likes of Nio Inc., BYD Co. and Tesla Inc.
Xpeng Inc.’s shares soared after it agreed to buy Didi Global Inc.’s smart-car development arm in a deal that both eliminates a potential competitor in the crowded electric-vehicle market and gives it a tech-savvy partner in a new venture.
The HK$5.84 billion ($1.01 billion) all-stock deal will see Didi emerge with a 3.25% stake in Xpeng, according to an exchange filing Monday. Xpeng shares surged more than 16% in Hong Kong trading before paring gains to close 11% higher. Its American depositary receipts gained 5% by 4.27am in New York.
