(Yicai Global) April 11 -- The world's largest contract manufacturer Hon Hai Precision Industry, better known as Foxconn, has sold off its stake in Alibaba-backed Xiaopeng Motors ahead of the new energy vehicle maker's upcoming initial public offering.
Taiwan-based Foxconn has divested equity worth CNY300 million (USD44.7 million) in the Guangzhou Tesla rival to an affiliate of IDG Capital, an insider told Tencent's online media outlet Yixian.
Boston-based IDG took over the stake after talks involving multiple parties in a move that will guard against risks during a period of restructuring of Xpeng Motor's overseas operations.
Foxconn pumped CNY300 million into the NEV maker for its B-round in January last year to take a 2.94 percent stake. Other investors included Alibaba Group Holding and IDG with a total of CNY2.2 billion raised. The Hangzhou-based tech giant owns a 10 percent stake in the firm.
Founded in 2014, Xpeng Motors has accumulated total funding of CNY14 billion. The firm's first car, a sports utility vehicle, went into mass production at the turn of the year.
Deliveries started last month and the company aims to hand over the keys for more than 10,000 vehicles before the end of July and then 40,000 by December.
Editor: William Clegg