Stellantis (STLA)-backed Chinese EV maker Leapmotor is set to receive major government investment to accelerate manufacturing and challenge American rivals such as Tesla (TSLA).
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Leapmotor Sells Stake
Leapmotor, in which Chrysler automaker Stellantis has a 19% stake, revealed today that FAW Group, China’s oldest car maker and a state-owned enterprise, had bought a 5% stake in the business for $534 million.
Announcing the news, Leapmotor chief executive Zhu Jiangming said that the company aims to achieve annual deliveries of 4 million units a year in 10 years’ time. “Leapmotor will strengthen our value through the fine-tuning of our production, while offering customers the best driving experience,” he said.
In the first 11 months of 2025, the company delivered a total of 536,132 vehicles to customers at home and abroad, a 113% year-on-year increase.
Leapmotor aims to deliver 1 million vehicles in 2026, which would translate into a more than 60% year-on-year sales increase, according to Zhu. That would partly be driven by a global expansion push in partnership with Stellantis.
Leaping Forward in China
Stellantis oversees a joint venture that produces and sells Leapmotor vehicles overseas.
Achieving that mark would likely see Leapmotor leap into the No 3 spot among China’s largest EV makers, behind BYD (BYDDY) and Geely (GELYF).
Leapmotor’s smart EVs are also a challenge for Tesla given that it boasts similar features to Tesla’s Shanghai-made Model 3 and Model Y vehicles but at half the price. Although Tesla, which has a significant exposure to China – see below – has seen those brands perform well this year.
Neither FAW nor Stellantis, which invested in Leapmotor in 2023, plans to seek control of the automaker, said Leapmotor’s CFO Li Tengfei.
However, FAW is understood to be looking at jointly developing new EV models with Leapmotor to help raise brand awareness. It is also planning to launch a premium vehicle lineup priced above $34,000.
In addition, Leapmotor also plans to launch the first model of its A-series lineup in the first quarter of 2026. The standard version of the model has recently been delivered to suppliers for testing.
The new model will be developed simultaneously for the Chinese and European markets, featuring a smaller size than the B-series to align with European consumer preferences.
Leapmotor also plans to start production in Spain in 2026, sourcing 40% of parts locally as required by authorities there.
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