Chinese electric vehicle maker Xpeng secures $2 billion credit line to expand manufacturing

FILE PHOTO: The logo on an XPeng Inc. P7 performance electric vehicle is seen outside the New York Stock Exchange in New York, U.S., August 27, 2020. REUTERS/Mike Segar

BEIJING (Reuters) – Chinese electric vehicle maker Xpeng Inc said on Tuesday it has secured a credit line of 12.8 billion yuan ($2 billion) from five Chinese banks to expand manufacturing and sales.

New York-listed Xpeng, which has a market value of $35 billion, said the credit facility will diversify its funding channels.

The maker of the P7 sedan and the G3 sport-utility vehicle is planning to build a third car plant in China.

The agreement was signed with Agricultural Bank of China, Bank of China, China Construction Bank, China CITIC Bank and Guangzhou Rural Commercial Bank.

Xpeng, which sells mainly in China and competes with Tesla Inc and Nio Inc, delivered just over 27,000 vehicles last year.

($1 = 6.4716 Chinese yuan)

Reporting by Yilei Sun and Brenda Goh; Editing by Edwina Gibbs

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