Volkswagen to Take Stake in Chinese EV Maker Xpeng
27 July 2023 - 12:05AM
Dow Jones News
By Will Feuer
Volkswagen is taking a roughly 5% stake in Chinese electrical
vehicle maker Xpeng as part of a broader collaboration through
which the companies will jointly develop two B-class battery EVs
for sale in China.
Xpeng will issue Class A ordinary shares in the company that
equal about 4.99% of the company's outstanding share capital and
sell them at a price of $15 per American depositary share to
Volkswagen. The investment will total about $700 million, the
companies said.
The battery EVs that the two companies plan to jointly develop
will be sold in the Chinese market under the Volkswagen brand, the
companies said. The models are expected to start production in
2026.
The companies said they will explore other opportunities for
cooperation.
New York-listed ADSs of Xpeng climbed 17.5% to $18.05 in morning
trading.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
July 26, 2023 09:50 ET (13:50 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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