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China’s Xpeng to acquire Didi’s EV unit in deal

Chinese EV maker Xpeng said it would buy Didi’s electric car development business – a deal worth up to $744 million that will see it supply vehicles to the ride-hailing giant, boosting production and cutting costs.

Shares in Xpeng, one of China’s smaller electric vehicle manufacturers and currently loss-making, shot up 11% in Hong Kong trade on the news which comes on the heels of a stake sale to and partnership with Germany’s Volkswagen.

The all-stock deal with Didi calls for Xpeng to launch an A-class model next year under a new brand, in a project called MONA, which will be priced in the 150,000 yuan ($20,000) price tier. Xpeng’s current offerings are mostly priced above 200,000 yuan.