By Dave Sebastian
Alibaba Group Holding Ltd., with its online-shopping subsidiary, Taobao China Holding Ltd., has upped its stake in the Chinese electric-vehicle maker XPeng Inc. to 19% of Class A ordinary shares after XPeng's initial public offering late last month, according to a securities filing.
XPeng, one of Tesla Inc.'s Chinese rivals, raised $1.5 billion through its trading debut in the U.S., more than initially planned, because of investor demand. Alibaba had a 3.2% stake in XPeng, according to FactSet.
Taobao would have the right to appoint one member to XPeng's board, who is currently the existing Alibaba director serving on behalf of Taobao, the securities filing said. If Taobao and its affiliates, together with Alibaba, own more than 10% of XPeng's shares, Alibaba would be required to remove its director and wouldn't be able to appoint its replacement, the filing said.
Alibaba and Taobao said in its filing that they acquired the shares for investment purposes and will review their investment continuously.
XPeng joined more than 20 Chinese technology companies to tap the U.S. market this year by listing on the Nasdaq Stock Market or the New York Stock Exchange and raising more than $6 billion, according to Dealogic data.
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