Shares of XPeng (NYSE: XPEV) leaped 16% intraday Tuesday after it struck a deal with five banks to secure a credit line of 12.8 billion yuan ($2 billion) to help boost its manufacturing, sales, and service capabilities.
The Chinese electric vehicle maker said in a statement late Monday that it signed an agreement with the Agricultural Bank of China, the Bank of China, China Construction Bank, China CITIC Bank, and Guangzhou Rural Commercial Bank.
The news comes as XPeng has been building up its balance sheet in the last few months or so. Ahead of its IPO, the company, backed by e-commerce giant Alibaba Group (NYSE: BABA) and Hillhouse Capital Management Ltd., raised $900 million. In its public debut in August, XPeng raised $1.7 billion more. Then, XPeng fetched $2.5 billion in a follow-on offering last month.
Fellow EV makers including Tesla (Nasdaq: TSLA), Li Auto (Nasdaq: LI), and Nio (NYSE: NIO) have also been active in shoring up capital in recent months.
Nio Downgraded by Citigroup
On Monday after the markets closed, Nio said that It would offer $1.3 billion in convertible notes. In the past two trading days before Tuesday, Nio's shares hit record highs, as investors expressed euphoria over the company unveiling its ET7 luxury sedan. However, Citigroup analyst Jeff Chung downgraded the hot stock in Nio from Buy to Hold on Tuesday. He expressed concerns over the possible competition by a Tesla Model-S “facelift.”
“ET7 is good but not enough to make any critical changes from Tesla's challenge," Chung wrote in a note to clients, as cited by MarketWatch.
Meanwhile, Nio’s stock slipped in early trading but recovered later on. By midday, shares of Nio were trading 1% higher from Monday’s close.
Other EV players Tesla and Li Auto, watched their shares rise 6% and 9% intraday respectively.
So far XPeng is off to a hot start in 2021, as its shares are up 12% year-to-date. Also, its stock has now more than tripled from its IPO price of $15 per share.