XPeng Stock Surges on Major European Expansion
Shares climb over 4% after the EV maker announces entry into five new European markets and a production deal with Magna.
XPeng Inc. (NYSE: XPEV) shares surged more than 4% in pre-market trading on Friday as the electric vehicle maker announced a significant strategic expansion into five new European markets, signaling a deeper commitment to its global growth strategy.
The Chinese automaker's stock climbed 4.36% to $22.90 ahead of the New York opening bell, following a 5.4% jump in its Hong Kong-listed shares. The investor enthusiasm was fueled by news that XPeng will begin selling its electric vehicles in Switzerland, Austria, Hungary, Slovenia, and Croatia, with operations commencing in late 2025 and early 2026.
Underscoring its long-term vision for the continent, XPeng has forged a pivotal partnership with automotive manufacturing giant Magna International. In a move to localize its production, XPeng will assemble two of its EV models at , with serial production slated to begin in the third quarter of 2025. This marks the first time a Chinese automaker has enlisted Magna for complete vehicle assembly in Europe, a strategy that could help XPeng navigate potential EU tariffs on imported vehicles.
"This partnership aligns perfectly with our vision and strategy to bolster our European presence," said Brian Gu, Vice Chairman and President of XPeng, highlighting the move as a significant step in the company's internationalization.
The expansion is built on a foundation of strong overseas sales momentum. According to , XPeng's overseas deliveries grew by over 137% year-over-year between January and August, demonstrating rising international demand for its vehicles. This international growth complements the company's success in its highly competitive home market.
Back in China, XPeng recently launched its new P7 Sedan, positioning it as a direct competitor to the Tesla Model 3. The company reported receiving over 10,000 orders within the first seven minutes of its launch, a testament to its strong brand recognition and product appeal. While the company is riding a wave of positive news, it also recently issued a recall for its P7+ model due to a steering defect, a factor investors will continue to monitor. Nonetheless, the aggressive European strategy and strong sales figures appear to have captured the market's attention, positioning XPeng for a new phase of global competition.