XPeng (NYSE:XPEV) caught investors’ attention today, with its shares making a meteoric rise in early Wednesday trading. This surge in interest comes on the heels of XPeng’s announcement of a strategic tech partnership with auto behemoth Volkswagen (DE:VOW). Adding a cherry on top, Volkswagen is not just partnering up but also putting its money where its mouth is with a significant minority investment of $700M, equating to a 4.99% stake in XPeng. The end game here? A long-term, mutually beneficial alliance that leverages the unique strengths of both companies.
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The technical collaboration spells out an exciting development – XPeng and Volkswagen will collectively work on two B-class battery electric vehicles for the Chinese market, riding on XPeng’s G9 platform along with its connectivity and ADAS software. The vehicles, bearing the Volkswagen brand, are slated to roll off the production line in 2026. Beyond this, the partnership doesn’t stop there. The companies are keen on exploring other potential areas of strategic cooperation – whether that’s future EV platforms, software tech, or supply chain matters.
A look at the past five trading days for XPEV stock highlights the level of impact today’s news had on it. Indeed, shares jumped over 28% at the time of writing. As a result, investors are now up 31.18% during this timeframe.
