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Xpeng (XPEV) stock price jumped over 41% at the end of the first trading day and is up 7.59% in the pre-market today.
After months of meticulous planning, Chinese electric vehicle startup Xpeng Inc (NYSE: XPEV) went public via an IPO held at the New York Stock Exchange on Thursday. According to its filings, the company raised $1.5 billion after it sold 99.7 million shares for $15 each.
Due to the high demand for its shares from the investors despite the push and pull relationship between China and U.S., the company increased the number of shares to be sold from 85 million meant to be sold between $11 and $13 to almost 100 million shares.
After the debut, the shares rose during the day and managed to add $6.22, approximately 41.47% to close the day trading at $21.22. The volatility has continued in the pre-market, whereby its value is up over 6% to trade around $22.5.
Xpeng IPO Amid Crisis
The Xpeng IPO comes amid different market crises including where the Chinese firms that are listed in the US stock exchanges face heightened scrutiny from the U.S. policymakers.
However, with the IPO successfully completed and things running as expected, Xpeng anticipates competing ruthlessly for the market with other EV makers the likes of Tesla Inc (NASDAQ: TSLA), Li Auto Inc (NASDAQ: LI), Nio Inc (NYSE: NIO), and also from WM Motor Technology Co Ltd.
As of the time of its IPO, Xpeng had two electric vehicles on the market, the G3 SUV and the P7 sedan. The two are among a series of anticipated models to be released in the near future to compete with different models from other companies.
The wheel continues being re-invented, whereby the more EV companies grow immensely, the further we move away from fuel run engines and nearer to electric run vehicles. As a result, it is going to reduce the carbon emissions from motor exhausts, hence securing a healthy environment for future generations.
According to Xpeng, the production of its G3 model began in November 2018. Whereby, the company reported that as of July 31, it had delivered 18,741 G3 SUVs to customers.
On the other hand, the company noted that the deliveries of the P7 models began in May 2020, whereby it has delivered approximately 1,966 P7 sedans to the global market.
Previously, Xpeng said that it raised a total of $1.7 billion from investors that included the Chinese e-commerce giant Alibaba and Xiaomi Corp. in addition, the company had raised around $500 million in a Series C+ round held in July.