(Yicai Global) Aug. 28 -- Chinese smart new energy vehicle maker Xpeng Motors staged its NYSE debut yesterday, priced at USD15 per American depositary share, and closed 41 percent higher at USD21.22.

The Guangzhou-based Tesla contender, whose full name is Guangzhou Xiaopeng Motors Technology, which brought in more than its originally anticipated up to USD1.28 billion in its initial public offering, is the third rising Chinese NEV startup to list in the US after Nio and Li Auto.

Changes in energy, the impetus of new software and innovations in transport will advance the development of smart cars, and “With much more support, we will embrace the future of intelligent vehicles. We will definitely lead a fresh start of a new era” following the IPO, Xpeng's co-founder, Chairman and Chief Executive He Xiaopeng said at the listing ceremony.

He, who is Chinese mobile Internet software and service provider UCWeb’s co-founder, and David Li, a former president of Alibaba Group Holding’s mobile business division and co-founder of Nasdaq-listed live streaming and social media platform YY, Fu Sheng, Cheetah Mobile’s chief executive, and Wu Xiaoguang, a senior management adviser from Tencent Holdings, jointly invested in and founded Xpeng in 2014, along with entrepreneur Xia Heng.

Role Model

These investors acknowledge the role He played as an internet veteran. Differences in thinking over how to make a better vehicle between He and them was a key factor that lured them to buy into Xpeng in the first place, and they remain optimistic about the space for future development of the rising internet car-making forces the firm represents, said Herry Han, a founding partner of early-stage Chinese venture capital firm Lightspeed China Partners. 

“We have confidence in the smart new energy vehicle sector -- it is a good opportunity that venture capitals should not miss,” Han said, referring to Lightspeed's participation in Xpeng's A+ funding round.

Xpeng has thus far closed 10 financing rounds, data from corporate registry portal Tianyancha show. It raised USD400 million in Series C funding in November, bringing aboard handset giant Xiaomi as a strategic investor.

With a 27.8 percent stake, He has 58.9 percent post-IPO voting rights. Xia has 10.2 percent voting rights with a 4.3 percent shareholding, and Alibaba enjoys 14.9 percent based on 12.7 percent.

Nio shares [NYSE:NIO] fell 8.85 percent yesterday to USD18.12 after hours to give it a USD23.5 billion market cap. Li Auto [NASDAQ:LI] ended down 17.11 percent at USD19.38 that same day with a USD16.2 billion valuation. Tesla [NASDAQ:TSLA], meanwhile, closed up 3.97 percent at USD2,238.75, with USD417.2 billion market value.

An American depositary share is a US dollar-denominated stock of a foreign-based company sold on a US bourse. ADSs are issued by US depository banks under agreement with the foreign company listing in the US.

Editor: Ben Armour