Xpeng shares soar on Huawei partnership

Published 04/06/2025, 05:26
©  Reuters

Investing.com-- Xpeng Inc (NYSE:XPEV) rose sharply in Hong Kong trade on Wednesday after the Chinese electric vehicle maker announced a strategic cooperation with Huawei to incorporate the latter’s technology into its automobiles. 

Xpeng Inc (HK:9868) shares rose as high as HK$80.45, before trading up 2.9% at HK$79.10 by the midday break. This compared to a 0.8% increase in the Hang Seng index

Xpeng announced that it had entered a strategic cooperation agreement with Huawei, which will see the EV maker’s vehicles equipped with Huawei’s heads-up display technology. 

The company had signaled earlier this year that it would seek a partnership with Huawei, as it attempts to get a leg up in the highly competitive Chinese EV sector.

While local demand is strong, Chinese EV makers are falling over each other to capture a larger market share– through measures ranging from steep price cuts in their models to add-ons and sweeteners such as smart HUDs, assisted driving, and performance parts. 

Xpeng’s Hong Kong shares are trading up 76% so far in 2025, as the company’s strong deliveries and consensus-beating earnings positioned it as a potential competitor to established majors such as Tesla (NASDAQ:TSLA) and BYD (SZ:002594). 

The company has aggressively launched new products, including a new mass market car in 2024, as well as an updated version of its flagship X9 in April. 

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