XPeng generated excitement among investors at its AI Day last week.
The EV maker set a new monthly vehicle delivery record in October.
XPeng is scheduled to provide its third-quarter update on Monday, Nov. 17.
Chinese electric vehicle (EV) maker XPeng (NYSE: XPEV) has bucked the "risk off" trade this week, rising as much as 23%. As of midday on Friday, shares were still up for the week by 15.1%, according to data provided by S&P Global Market Intelligence.
A look at recent updates from the company helps explain the surge in share price.
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XPeng generated excitement among investors last week, and that momentum appears to have carried over into this week. First, the company reported record monthly EV deliveries in October. Over 42,000 units shipped represented 76% year-over-year growth.
The company rode that wave into its "AI Day 2025" presentation held last week. That's where investors got a bit of a surprise. The company unveiled a new artificial intelligence (AI) model it plans to use for more than just autonomous vehicle technology.
The company also created a narrative that closely resembled what EV leader Tesla has been promoting. XPeng unveiled a new humanoid robot, as well as plans for robotaxis and flying cars, all of which will be powered by its new AI chips. The company has plans to enter mass production in each of these areas.
XPeng CEO He Xiaopeng has said he has been inspired by Tesla, with his company making a similar transition to an AI and robotics company. Investors appear to be eager to get on board. Like Tesla, however, the proof will be in the pudding.
This week's rally may have gotten ahead of itself. If XPeng can dominate the Chinese market in these areas in the future, though, it may be worth having a speculative position now. Investors will hear more when the company releases its third-quarter update next week on Nov. 17.
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Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.