Alibaba and Foxconn invest heavily in car start-up

Xiaopeng Motors, one of the start-ups aiming to become China's Tesla, is backed by leading Chinese companies like Alibaba and Foxconn. Since the start of the year, the company reports having received 5 billion yuan worth of investments.

Xiaopeng plans to launch pre-sales of its first car, the G3 crossover, by the end of April.

The Chinese internet giant Alibaba is investing in various car start-ups as it hopes these businesses will generate new revenue streams. Alibaba has also developed its own car operating system.

Foxconn is a manufacturing company known for its production of devices such as the Apple iPhones and iPad and various game consoles.

Image: Xiaopeng Motors G3 at CES 2018 (source: Xiaopeng Motors)