Shares of Xpeng fall in Hong Kong debut even as the EV maker eyes global rollout

A staff member of XPeng Motors stands next to the charging station at company's booth during the media day for Shanghai auto show in Shanghai, China April 17, 2019. REUTERS/Aly Song/File Photo

Chinese electric vehicle maker Xpeng Inc shares fell by up to 3.5% in its $1.8 billion Hong Kong dual primary listing on Wednesday as the company said it would develop future models based on product platforms designed for international markets.

Xpeng shares opened 1.8% higher from the HK$165 per share issue price but the positive tone was short-lived.

The stock then dropped 3.5% to HK$159.30 in early trade.

Led by former Alibaba executive He Xiaopeng, the seven-year-old automaker is developing smart-car technologies including a smart cabin and autonomous driving. It is selling P7 and P5 sedans and G3 sport-utility vehicles.

Xpeng will roll out a new product platform with which it can develop several models of different segmentations and sizes, in two years, He told Reuters in an interview.

“The platform will be targeting the global market, meaning we will consider global auto regulations when we develop it,” He said. Like rivals Nio Inc and BYD, Xpeng is expanding global sales by shipping cars to Norway, where policies are supportive of EVs.

Xpeng is making its cars in two Chinese factories and is building two new plants. It is adding production hours at Zhaoqing, He said. Its prospectus shows Xpeng is planning an SUV model next year.

“Between 2025 and 2030, China’s auto industry might look like the current smartphone industry, which a few players dominate,” He, who previously founded a smartphone software company, said.

Xpeng will continue developing smart-car technologies, as well as a flying car that would also be able to drive on roads, He said, without giving a timeframe. The company already has a vertical take-off and landing (VTOL) prototype that is undergoing testing.

Xpeng chose a dual primary listing rather than a secondary listing as it has been listed in New York for less than two years. The dual primary listing allows qualified Chinese investors to take part through the Stock Connect regime linking the mainland Chinese and Hong Kong markets, according to the exchange’s rules.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.