Xpeng priced its follow-on offering of the ADS at $45 each, representing a 7.6% discount to its last closing price of $48.69.

Chinese electric car company Xpeng Motors (NYSE: XPEV) plans to sell 48 million ADS, more than the 40 million it was originally planned to offer.

Xpeng priced its follow-on offering of the ADS at $45 each, representing a 7.6% discount to its last closing price of $48.69, according to an announcement on the company's website.

The underwriters will have a 30-day option to purchase up to an aggregate of 7,200,000 additional ADSs.

The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses, will be approximately $2.2 billion, excluding any exercise of the underwriters' option to purchase additional ADSs.

The offering is expected to close on December 11, 2020, the company said.

Xpeng announced on Monday that it plans to issue an additional 40 million ADSs, with an over-allotment option of 6 million ADSs to the underwriters.

Each ADS represents two shares of Class A common stock, with a maximum price of $25.33 per additional Class A share, which is calculated as a maximum price per ADS of $50.66. The aggregate amount of the financing was expected to be up to $1.942 billion, after expenses, and $2.23 billion if the over-allotment option is fully exercised.

The aggregate amount of the financing, net of related expenses, is expected to be no more than $1.942 billion, or $2.23 billion if the over-allotment option is fully exercised.

Xpeng expects to use the net proceeds from the proposed offering for (i) research and development of its Smart EVs and software, hardware and data technologies, (ii) sales and marketing and expansion of sales and service channels and supercharging network, as well as the expansion of its footprints in the international markets, (iii) potential strategic investments in core technologies of Smart EV, and (iv) general corporate purposes, including working capital needs.

On December 2, Li Auto filed an F-1 with the US Securities and Exchange Commission (SEC) for the issuance of 47 million additional ADSs for net proceeds of approximately $1.62 billion.

Approximately 70% of the funds raised by Li Auto will be used for technology development, including: approximately 30% for the research and development of new-generation electric vehicle technologies, including high-voltage platforms, high-charge/discharge rate batteries and ultra-fast charging; approximately 20% for the development of the next BEV platform and future models; and approximately 20% for the development of automated driving technologies and solutions.

Both Xpeng and Li Auto are focusing on R&D in electric vehicles, including core technologies such as batteries and charging.

Tesla said on Tuesday that it plans to issue additional shares and expects to receive up to $5 billion in capital. Tesla fell from up to down 2.55 percent in pre-market trading hours on the news.

Tesla has entered into agreements with several banks for the sale of its common stock.

Both Xpeng and Li Auto have raised a total of RMB 10 billion through issuance, which makes the market wonder whether Nio will raise additional funding.

William Li Bin, the founder of Nio, responded to analysts during the company's Q3 earnings call and made it clear that the company has no plans to raise additional funding in the short term to support Nio's growth.