On December 6th that Xiaopeng Motors announced tonight that Volkswagen’s investment in Xiaopeng has been completed, issuing a total of 94.079255 million new shares under general authorization, with a subscription amount of approximately 7.056 billion US dollars.
After the transaction, in Class A common stock, public investment representative shares account for 4.99%, other shareholders account for 76.51%, Class B common stock 18.5%, with a total of 18.85 billion shares. Volkswagen Group has obtained an observer seat on the board of directors of Xiaopeng Motors. In addition, for the two B-class pure electric vehicle models jointly developed by Xiaopeng and Volkswagen, the official stated that the feasibility study of the project has yielded positive results and has been completed.
On July 26th of this year, Volkswagen announced an investment of approximately $700 million in Xiaopeng, and will hold 4.99% of the company’s shares. After the transaction is completed, Volkswagen will obtain an observer seat on Xiaopeng’s board of directors. In the initial stage of the cooperation, both parties plan to jointly develop two electric vehicle models under the Volkswagen brand for the mid-size car market in China, and plan to enter the market in 2026. Regarding the cooperation model, Xiaopeng stated that, based on Xiaopeng G9 platform, Volkswagen will develop 2 B-level SUVs from hardware to software. Xiaopeng will provide the platform and technology, while Volkswagen will handle engineering research and development, design, and manufacturing. “Very few Chinese car manufacturers have self-developed full-stack companies. We are one of them, so we can cooperate with Volkswagen. This is a very high recognition of our technology. In the past, the market did not give us much value for our technology. We have always believed that our technology has high value.” Xiaopeng stated that realizing the value of technology has always been their goal, and this time they have achieved it. 2024 marks the important turning point for the realization of technology services income, and the income from technology services will also greatly change the valuation of Xiaopeng. “We focus on technology and platform. Our investment is relatively light in assets, and it is all things that have already been mass-produced. The software part is also relatively easy to replicate, so it has high gross profit.” Xiaopeng mentioned, but they refused to disclose specific pricing for hardware and software, citing confidentiality agreements. In addition to the planned new models, Xiaopeng also stated that they will launch “updated versions of current models” next year. “We expect these new models to bring more favorable gross profit margins, which will also help improve our profitability and product portfolio.”