XPeng to acquire assets related to DiDi’s Smart EV project, issue shares

XPeng announced its strategy to “accelerate the adoption of Smart EVs and technologies” through a strategic partnership with DiDi Global (DIDIY). XPeng plans to launch an all-new EV brand in 2024, currently being developed under the project name “MONA.” The company said it will leverage the new brand to expand in the mass market segment of RMB150,000 price range and “accelerate the adoption of Smart EV and technologies in this segment with enormous market potential.” An A-class Smart EV model will be launched in 2024 as the debut product of the company’s new brand. DiDi will provide support from its mobility ecosystem for the “MONA” project with access to its nationwide shared mobility market, XPeng said in a statement “This partnership will pave the way for the Company to build highly popular Smart EV models for the mass market segment in the RMB150,000 price range,” it added. XPeng will issue class A ordinary shares of the company, representing approximately 3.25% of its outstanding share capital upon completion of the issuance, to acquire assets related to DiDi’s Smart EV project. DiDi will thereby become a strategic shareholder of the company, with a lock-up period of 24 months after the initial closing. According to the agreement, XPeng will become the first automotive manufacturing company with “comprehensive support from the ecosystem” of DiDi, the company said. Both parties will “explore strategic cooperation in a number of areas, including marketing, financial and insurance services, charging, Robotaxi and international market expansion.”