Shares of the electronic vehicle manufacturer, Xpeng (XPEV) jumped by 33.52% after the Chinese company reported strong financial results today. XPeng was able to beat Analyst’s expectations, posting a 342% increase in revenues compared to the same period last year.
Since its IPO in August, Xpeng shares have more than doubled. Although the company is still young and has smaller gross profit margins than its direct competitors, investors are optimistic about its prospects.
Following Xpeng’s results, other Chinese EV manufacturers, including NIO (NIO) and Li Auto (LI), also surged. Investors are hoping that the strong results Xpeng was able to report were a result of strength in EV demand rather than indicative of isolated success by Xpeng.