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Leapmotor Raises $530M From State-Owned FAW, Eyes 4 Million Annual Sales by 2035

MarketDash Editorial Team
2 hours ago
Chinese EV maker Leapmotor secures over $530 million from state-owned automaker FAW through a strategic stock sale, while setting ambitious targets of reaching 1 million vehicles in 2026 and 4 million by the mid-2030s.

Zhejiang Leapmotor, the Chinese electric vehicle maker backed by Stellantis NV (STLA), just closed a substantial funding round worth more than $530 million from FAW, one of China's state-owned automotive giants. This isn't exactly spare change, and it signals serious ambitions for a company with its sights set on massive scale.

The Mechanics of the Deal

According to a filing with Hong Kong authorities, Leapmotor sold over 74.8 million domestic shares to FAW at HK$55.29 (about $7.11) each. Do the math, and you land at roughly $532 million flowing into Leapmotor's coffers. That's meaningful capital for an automaker looking to ramp up production and expand beyond its home market.

Leapmotor CEO and founder Zhu Jiangming laid out an ambitious roadmap at a recent event: the company is targeting annual sales of 1 million vehicles by 2026, then quadrupling that to 4 million by the next decade. It's an aggressive timeline, but with state backing and deep pockets from Stellantis, Leapmotor has the resources to make a serious run at it.

The European Push

Chinese EV manufacturers aren't just dominating at home anymore. They're making serious inroads into Europe, treating the continent as their primary international battleground. BYD Co. Ltd. (BYDDY) (BYDDF) has been leading the charge, consistently posting triple-digit sales growth in 2025 as European buyers warm up to Chinese electric vehicles.

Xpeng Inc. (XPEV) is expanding its European footprint into Estonia, Lithuania, and Latvia, while also entering Cambodia in Asia. The company has partnered with Magna International Inc. (MGA) to manufacture two EV models at Magna's Austrian facility, giving Xpeng a genuine local production presence in Europe.

Meanwhile, Xiaomi Corp (XIACF) (XIACY) recently announced it has established a research and development center in Germany, laying the groundwork for its planned European market entry in 2027. Even smartphone makers are getting into the automotive game now.

New Efficiency Standards

China's authorities aren't just encouraging EV adoption—they're setting the bar for efficiency. In what appears to be a world-first regulation, Chinese officials unveiled new energy consumption standards for electric vehicles. Starting next year, EVs sold in China cannot consume more than 15.1 kWh per 100 kilometers (about 62 miles). That's a meaningful benchmark that could influence how manufacturers design and engineer their vehicles, not just for China but potentially for global markets as efficiency becomes a competitive differentiator.

Back to Stock Market News

Leapmotor Raises $530M From State-Owned FAW, Eyes 4 Million Annual Sales by 2035

MarketDash Editorial Team
2 hours ago
Chinese EV maker Leapmotor secures over $530 million from state-owned automaker FAW through a strategic stock sale, while setting ambitious targets of reaching 1 million vehicles in 2026 and 4 million by the mid-2030s.

Zhejiang Leapmotor, the Chinese electric vehicle maker backed by Stellantis NV (STLA), just closed a substantial funding round worth more than $530 million from FAW, one of China's state-owned automotive giants. This isn't exactly spare change, and it signals serious ambitions for a company with its sights set on massive scale.

The Mechanics of the Deal

According to a filing with Hong Kong authorities, Leapmotor sold over 74.8 million domestic shares to FAW at HK$55.29 (about $7.11) each. Do the math, and you land at roughly $532 million flowing into Leapmotor's coffers. That's meaningful capital for an automaker looking to ramp up production and expand beyond its home market.

Leapmotor CEO and founder Zhu Jiangming laid out an ambitious roadmap at a recent event: the company is targeting annual sales of 1 million vehicles by 2026, then quadrupling that to 4 million by the next decade. It's an aggressive timeline, but with state backing and deep pockets from Stellantis, Leapmotor has the resources to make a serious run at it.

The European Push

Chinese EV manufacturers aren't just dominating at home anymore. They're making serious inroads into Europe, treating the continent as their primary international battleground. BYD Co. Ltd. (BYDDY) (BYDDF) has been leading the charge, consistently posting triple-digit sales growth in 2025 as European buyers warm up to Chinese electric vehicles.

Xpeng Inc. (XPEV) is expanding its European footprint into Estonia, Lithuania, and Latvia, while also entering Cambodia in Asia. The company has partnered with Magna International Inc. (MGA) to manufacture two EV models at Magna's Austrian facility, giving Xpeng a genuine local production presence in Europe.

Meanwhile, Xiaomi Corp (XIACF) (XIACY) recently announced it has established a research and development center in Germany, laying the groundwork for its planned European market entry in 2027. Even smartphone makers are getting into the automotive game now.

New Efficiency Standards

China's authorities aren't just encouraging EV adoption—they're setting the bar for efficiency. In what appears to be a world-first regulation, Chinese officials unveiled new energy consumption standards for electric vehicles. Starting next year, EVs sold in China cannot consume more than 15.1 kWh per 100 kilometers (about 62 miles). That's a meaningful benchmark that could influence how manufacturers design and engineer their vehicles, not just for China but potentially for global markets as efficiency becomes a competitive differentiator.