As we are all aware, the electric vehicle race is well underway. Unfortunately, that doesn’t help Nio (NYSE:NIO), as they provided yet another disappointing earnings call. With that said, one of their competitors, XPeng (NYSE:XPEV), is looking to take over the driver’s seat in the China EV market. After inking a $700 million development deal with Volkswagen, they’ve brought another tech giant worth $744 million by partnering with Didi, a China’s rideshare giant. Yes, the same Didi that bought out Uber China.
Signing the development agreement with XPeng is a means for Didi to continue its EV and autonomous businesses after difficulties in both sectors. Last year, Didi’s EV business, headquartered in Da Vinci Auto Co., lost more than $360 million. They will collaborate to deploy autonomous technology charging stations and incorporate them into Didi’s infrastructure. Jefferies analysts were upbeat about the deal’s potential for XPeng, retaining the bank’s Buy rating and $25.30 price target. Xpeng is undoubtedly an EV company to watch, and considering this significant partnership, they must be doing something right over there. If you are on Twitter, now known as “X,” feel free to follow @ThrashCapital for more content like this!
