Alibaba increased its long position in XPeng Motors' Hong Kong shares from 0% to 14.97% on July 7, according to a HKEx filing.
XPeng went public in Hong Kong on July 7 at an offering price of HK$165, after which its share price continued to fall. But in the past four trading days, the stock has accumulated a gain of about 13 percent.
Alibaba is a key backer of XPeng, which has a 12 percent stake in XPeng with 14.6 percent of the voting rights, according to the latter's 20-F filing with the US Securities and Exchange Commission in April.
Last August, XPeng received over $300 million in funding led by Alibaba, just under half a month after XPeng's Series C+ round.
By that time, XPeng had completed 10 rounds of funding within five years of its founding, with Alibaba appearing three times.
In December 2017 and January 2018, Alibaba participated in XPeng's A+ and B rounds of financing, but then disappeared.
It was not until two and a half years later that Alibaba reappeared as a lead investor in XPeng's new round of financing.
Internet giant Tencent chose NIO and has been adding to its portfolio, while Li Auto is backed by online-service super-app Meituan and TikTok owner Bytedance.