Guangzhou Xiaopeng Motors Technology Co Ltd's (XPeng) shares listed on the United States markets rallied in the premarket on Wednesday following news related to the deal made with the Volkswagen Group.
XPeng previously revealed in a press release that it has entered into a "long-term strategic partnership" with Volkswagen. The latter will be buying a $700 million or 4.99% stake from the Chinese carmaker. "In connection with the strategic technical collaboration, XPENG and the Volkswagen Group will jointly develop two B-class battery electric vehicles ('BEV') models for sale in the Chinese market under the Volkswagen brand. Furthermore, the parties will explore additional potential strategic cooperation in a number of areas, including collaboration on future EV platforms, software technologies and supply chain," it was written in the press release.
XPeng's stock listed on the New York Stock Exchange (NYSE) skyrocketed 14.19% at 9:12 am ET, selling for $17.54 apiece.
