Volkswagen finalizes $700 million investment in XPeng Motors

XPeng Motors announced the completion of Volkswagen's substantial $700 million investment in the company. That translates into a 4.99% stake in XPeng Motors.

In addition to the substantial investment, Volkswagen also secured an observer seat on XPeng Motors' board of directors. While this might give them a front-row view of XPeng's operations, it remains unclear how much influence they can exert on the Chinese automaker's decision-making processes.

The collaboration between the two companies extends beyond financial investments, with plans to jointly develop two electric vehicles for China's mid-size car market by 2026. XPeng Motors touts its full-stack self-developed capability, highlighting its role in providing the platform and technology, while Volkswagen handles engineering research, design, and manufacturing.

Source (Chinese)