XPeng's shares rise 4% as new subsidiary launches in China.

XPeng Inc. (XPEV) shares rise 4% before the US market opens, following the announcement of a new subsidiary, Taizhou Pengzhao Automobile Sales Co., Ltd., established in China. The subsidiary's business scope includes the sale of new energy vehicles, automotive accessories, and charging stations. The company is wholly owned by XPeng Automobile Sales Co., Ltd.

XPeng Inc. (XPEV) shares have surged 4% before the U.S. market opens following the announcement of a new subsidiary, Taizhou Pengzhao Automobile Sales Co., Ltd., based in China. The subsidiary will focus on the sale of new energy vehicles, automotive accessories, and charging stations. The company is wholly owned by XPeng Automobile Sales Co., Ltd. [1]

The new subsidiary marks an expansion of XPeng's sales and distribution network in China, aiming to capitalize on the growing demand for electric vehicles (EVs) in the region. The move comes as XPeng prepares to launch its next-generation P7 electric sedan, which is expected to rank among the top three in sales for pure electric sedans priced under RMB 300,000. The P7 is set to achieve a steady monthly delivery volume exceeding 40,000 units starting in September [2].

XPeng's CEO, He Xiaopeng, emphasized the company's commitment to technology and aesthetics, allocating more resources to the design team. The new P7 features advanced AI capabilities, including three in-house developed Turing AI chips, providing a combined peak computing power of 2,250 TOPS, which is three times more powerful than the AI 4 SoC used in the Tesla Model Y [2].

The P7 also boasts an 800V high-voltage system, with entry-level variants featuring a single e-motor in the rear axle for 270 kW (362 hp) and an AWD variant with a combined peak power output of 437 kW (586 hp), achieving a zero-to-hundred acceleration time of 3.7 seconds. The vehicle's sleek design and sporty features aim to attract younger consumers [2].

XPeng's shares have been on an upward trajectory in recent months, driven by strong sales performance and strategic expansions. The company's latest initiatives, including the establishment of the new subsidiary and the launch of the P7, are expected to further boost its market presence and financial performance.

References:
[1] https://cnevpost.com/2025/08/25/xpeng-to-launch-new-p7-aug-27/
[2] https://carnewschina.com/2025/08/26/new-xpeng-p7-autonomously-drives-from-production-line-to-shipping-area-in-china/