XPeng buying Didi’s Smart electric car unit to launch new affordable EV brand in 2024
Chinese EV maker XPeng (XPEV) announced Monday it plans to buy out Didi Global’s Smart electric car division. XPeng revealed the partners will launch a new mass-market EV brand next year with a starting price of around 150,000 RMB (roughly $20,500).
XPeng to launch new affordable EV brand
According to the new agreement, XPeng will become the first automaker with support from Didi’s ecosystem.
The Chinese EV maker said it will buy Didi’s Smart EV development project in an all-stock deal worth around $744 million. Didi will become a strategic shareholder, while the two companies will collaborate on a new EV brand.
XPeng will use the tech to launch the new affordable EV brand next year, being developed under the project name “Mona.”
The company will use the new brand to expand its presence in the mass market segment with a starting price of RMB 150,000 ($20,500). XPeng typically sells premium EVs, so “MONA” is designed to accelerate production and sales growth.
CEO of XPeng, Mr He Xiaopeng, praised the new partnership, saying:
XPENG’s A-class Smart EV products under the new brand will not only significantly increase our scale, but also accelerate the adoption of our Smart EV technologies in the mass market segment, bringing our technologies to a much broader customer base.
A new A-class Smart EV will be launched next year as the brand’s debut product. XPeng says the new model and “MONA” brand will be separate from its core products.
Meanwhile, Didi will provide support from its mobility ecosystem to help advance the project, paving the way for Smart EV models for the mass market segment. Both companies will collaborate on marketing, financials, insurance, charging, Robotaxi, and international expansion.
Didi is one of the world’s largest ride-hailing companies (often compared to Uber), asserting its dominance in China with around 70% of the market. At the end of March, Didi had 45 million average daily transactions.
After becoming an early adopter, the ride-share giant claimed to be the “world’s largest EV fleet operator” in 2019.
The company has committed to accelerating the adoption and sharing of intelligent electric vehicles. Didi’s app was restored in China in January after being removed in July 2021 over cybersecurity concerns as speculation grows it’s moving in a new direction.
XPeng’s stock is trading up 3% in Monday’s trading session following the news.
Electrek’s Take
The deal seems like a win-win for both companies. XPeng will expand into the mass market, an affordable segment with a new brand and one less competitor.
Meanwhile, Didi’s move to sell off its assets may signal it’s moving in a new direction. The partnership comes as China’s EV market is heating up, with low-cost competitors like BYD gaining market share.
XPeng’s deal comes days after photos of NIO’s new “Alps” mass market EV brand emerged. NIO’s new brand will compete with legacy automakers like Toyota and Volkswagen in the $30,000 to $50,000 price range.
XPeng looks to be taking a similar route as NIO with a differentiated brand to enter the mass-market segment.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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