Softbank is negotiating a big stake in Uller's IPO.

According to the Wall Street Journal's Beijing time on April 26, people familiar with the matter said that SoftBank of Japan is in talks with Changshangwei to buy a large stake in the company's upcoming initial public offering. The move could help to raise the value of the company by billions of dollars.

The Shanghai-based company, the newly emerging rival of Tesla, launched its first model, a seven-seater SUV, in December and began taking orders from customers. The company plans to go public in New York in the second half of this year, according to people familiar with the matter.

Softbank runs a $100 billion SoftBank vision fund that could buy a $200 million stake in a successful IPO, one person familiar with the matter said. The company is said to be hoping to raise $2 billion to $3 billion in an IPO. Negotiations with SoftBank are still under way and plans are still likely to change. Representatives of Softbank and Ully declined to comment.

The company's planned listing comes at a time of rapid growth in China's electric car market. Sales of electric vehicles in China rose 72 % to 578000 last year, four times the U.S. market. Chinese automakers are also supported by government subsidies and consumers are encouraged to buy electric cars because they are less polluting.

The company was founded in 2014 by Chinese entrepreneur Li Bin and completed a $1bn round of financing last October, valued at $5bn. Tencent is the lead investor in this round of financing, and other investors include Baidu, High View Capital and Hopu InvementManagementCo.

At present, Li Bin is the CEO and chairman of Ulleigh Motors. He is also the founder of the New York Stock Exchange's listed company.

Weilai is one of dozens of electric car makers that have sprung up in recent years, inspired by government support for the industry. The company also has a base in Silicon Valley where it develops autopilot technology and other software.

In December, the company launched the all-electric SUVWei ES8. He said the car would compete with the Tesla Model X, but at a lower cost. The car is capable of responding to voice commands and is fully charged with 220 miles(350 kilometers) at a time.

Softbank has been investing in the car supply chain through its funds and subsidiaries, but has not yet invested in a carmaker. The company, which owns a stake in a Canadian lithium mine, last year bought ARM, a chip architecture design company, for tens of billions of dollars, and invested in Didi Travel and Uber, a contract car giant.

Sun justice, the founder of SoftBank, has previously said that a key part of its investment strategy is to be able to create synergies between the companies it invests in. (Compiled / Sailing) More first-hand news, welcome to download Phoenix News client subscription Phoenix Network Technology. For in-depth coverage, please search "iFeng Technology" by WeChat.

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