Xpeng Surges on Buying Didi Small Cars

The Company plans to launch an all-new EV brand in 2024, currently being developed under the project name “MONA”. The Company 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. Project "MONA" will accelerate the Company's production and sales growth and help achieve greater economies of scale.

An A-class Smart EV model will be launched in 2024 as the debut product of the Company's new brand. The new model and brand will be differentiated from XPENG-branded products and the main brand. DiDi will provide support from its mobility ecosystem for the "MONA" project with access to its nationwide shared mobility market. 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.

XPENG will issue Class A ordinary shares of the Company, representing approximately 3.25% of the Company's 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.

XPEV shares added 47 cents, or 2.7%, to $17.96.