Beijing (ZXZC)- On the evening of August 13, Chinese electric vehicle maker XPeng Inc. (XPENG) announced that it officially began production of the XPENG MONA M03 on July 30, 2024, marking the achievement of the Start of Production (SOP) milestone. The vehicle is now ready for sales and delivery to general customers.

This development follows XPENG's acquisition of DiDi Global Inc.'s smart auto development business, with payments structured based on achieving specific milestones.

MONA 03; photo credit: XPENG

The XPENG MONA M03 is set to officially hit the market on August 27, 2024. Since August 1, the first batch of display vehicles has started arriving at XPENG showrooms nationwide. The SOP completion was formally recognized on August 13, 2024.

Under the share purchase agreement, XPENG has issued 4,636,447 Class A ordinary shares to DiDi as consideration for reaching the SOP milestone, representing approximately 0.24% of the company's expanded share capital.

This SOP milestone signifies a major step forward for XPENG in its smart vehicle development endeavors. Last year, on August 28, XPENG announced plans to issue Class A ordinary shares representing 3.25% of the company's post-transaction equity to acquire DiDi's smart vehicle development assets, alongside forming a strategic partnership to develop the MONA series vehicles, targeting the compact car market.

XPENG Chairman and CEO He Xiaopeng previously stated that the new brand, developed in partnership with DiDi, is expected to achieve an annual sales target of 100,000 units.