XPeng Surges On Long-term Partnership With Volkswagen

(RTTNews) - Shares of XPeng Inc. (XPEV) are rising more than 35% Wednesday morning after the Chinese EV company and Volkswagen Group announced long-term strategic partnership.

As per the deal, XPENG and the Volkswagen will jointly develop two B-class battery electric vehicles models for the Chinese market under Volkswagen brand. The models are expected to start production in 2026.

XPENG will issue Class A ordinary shares about 4.99% of its share capital to the Volkswagen Group at $15 per ADS for about $700 million.

Additionally, strategic cooperation in areas including opportunities future EV platforms, software technologies, and supply chain will also be explored.

XPEV is at $20.87 currently. It has traded in the range of $6.18 - $25.91 in the last 52 weeks.