China-based XPeng, Inc. (HK:9868) has teamed up with German carmaker Volkswagen (DE:VOW) to build a supercharging network in China. With this deal, customers of both XPeng and Volkswagen Group China will gain access to more than 20,000 charging stations spread across 420 cities nationwide. XPeng shares rose by more than 3% in today’s session. Meanwhile, Volkswagen gained nearly 2% as of writing.
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Volkswagen and XPeng Expand Partnership
The new collaboration expands the existing partnership between XPeng and Volkswagen, which was formed in 2023 when Volkswagen acquired a 4.99% stake in XPeng for approximately $700 million.
In April 2024, both companies announced their plan to co-develop advanced E/E (electrical/electronic) architecture for Volkswagen’s EV platform in China. The new architecture will power Volkswagen brand EVs made in China starting in 2026. Earlier in February, both companies agreed to collaborate on parts and technology to boost their EV production.
According to the latest agreement, XPeng and Volkswagen Group China will partner to create one of the largest ultra-fast charging networks in China. The collaboration also includes the potential for co-branded superfast charging stations in China, aiming to speed up the expansion of the charging network and enhance operational efficiency.
According to Xinhua News Agency, China has maintained its position as the global leader in new energy vehicle (NEV) production and sales for nine consecutive years, from 2015 to 2023. This continued dominance has further enhanced China’s appeal to foreign automakers, resulting in such partnerships. Notably, XPeng experienced a remarkable 82.4% year-over-year growth in December, delivering 36,695 cars.
Is XPeng a Good Stock to Buy?
On TipRanks, 9868 stock has received a Moderate Buy rating from analysts, based on five Buy, two Hold, and one Sell recommendation. The XPeng share price forecast is HK$58.73, which implies an upside of 27% from the current level.
