Following the chairman’s announcement that Xpeng Inc. intends to begin mass production of its flying car model and industrial robots by 2026, the company’s stock increased. Before reversing part of the gains, the Hong Kong-listed shares of the electric vehicle manufacturer rose as much as 7.1% on Monday, momentarily reaching their highest level since August 2022. According to a Bloomberg Intelligence measure of global electric vehicle equities, the stock has more than doubled this year and outperformed all of its peers. It has also increased by more than 4% since the beginning of January.
Companies that manufacture high-tech goods are attracting more attention as investors search for businesses to capitalize on Hong Kong’s AI-driven stock market boom. Strong order momentum for Xpeng’s new battery EV vehicles, which are priced competitively and include autonomous driving capabilities, has further increased interest in the company. According to Steven Leung, executive director at UOB Kay Hian Hong Kong Limited, “Xpeng shares have gotten a lift this year from its improving monthly sales figures, demonstrating to investors that its product strategy are working well despite intense competition.” Although sentiment may be improved by the company’s recent developments on flying automobiles and humanoid robots, “it’s still distant for those projects to translate into earnings contributions.”