: XPeng’s stock soars after Volkswagen invests $700 million, announces cooperation agreements
Shares of XPeng Inc. XPEV soared 13.4% toward an 11-month high in premarket trading Wednesday, after Germany-based Volkswagen Group XE:VOWVWAGY said it was investing $700 million in the China-based electric vehicle maker. Volkswagen’s stock fell 2% in Germany. The investment includes cooperation agreements between the VW brand and XPeng and between Audi and SAIC. Under terms of the investment, VW is taking a 4.99% stake in XPeng through the purchase of shares at $15 per American depositary share, which represents a 2.3% discount to Tuesday’s closing price of $15.36. The cooperation agreement will provide for the joint development of two VW brand electric models for the mid-size segment in China, with the vehicles slated to be rolled out in 2026. Separately, Audi’s cooperation with SAIC is planned to start with electric models in a segment that Audi does not yet have a presence in China.
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