In July 2020, native branches for four of the “big five” banks extended 10.4 billion yuan in credit to Nio for the start-up’s China operations based mostly within the metropolis of Hefei close to Shanghai. Contributors on this deal included China Development Financial institution, Industrial and Industrial Financial institution of China, Financial institution of China and Agricultural Financial institution of China, in keeping with an announcement from Nio.

In China’s state-dominated system, the banks choose to lend to state-owned enterprises. That makes it troublesome for privately owned corporations to get financing, until they’ll persuade the state-owned banks of their capacity to repay loans.

Xpeng’s credit score line announcement comes after the corporate raised greater than $4 billion final yr in its preliminary public providing on the New York Inventory Trade in August and a follow-on providing in December.

Shares have soared greater than 195% because the IPO.

The beginning-up didn’t disclose particulars on credit score phrases Tuesday. The settlement will assist the Guangzhou-based firm increase its manufacturing, gross sales and providers and different operations, in keeping with a launch.

Xpeng stated it started constructing a second manufacturing facility in November. The corporate stated it has opened 116 retail storefronts and 50 service facilities, as of Sept. 30. And Xpeng revealed in September it’s investing in the development of flying vehicles.

Deliveries totaled 27,041 final yr, with greater than half coming from a brand new P7 sedan that started mass deliveries in late June. The corporate added it delivered 100 items of its G3 SUV to prospects in Norway in December.

Though total deliveries greater than doubled from a yr in the past, Xpeng’s figures fell in need of Nio’s greater than 43,700 deliveries. Nio’s autos have focused the upper finish of the market, whereas Xpeng’s value vary has been decrease.

Within the final two weeks, each corporations introduced plans for brand new sedans. Nio’s is predicted to reach within the first quarter of subsequent yr. Xpeng claims its sedan will start deliveries later this yr.