Chinese electric vehicle manufacturer Xpeng Inc (NYSE: XPEV, HK: 9868) saw its shares soar in Hong Kong trading on Wednesday following the announcement of a strategic partnership with tech giant Huawei.

Xpeng’s Hong Kong stocks surged as high as HK$80.45 before settling up 2.9% at HK$79.10 by midday, outperforming the Hang Seng index, which registered a modest 0.8% gain. This performance marks a notable increase for Xpeng, with a remarkable 76% growth year-to-date in 2025, driven by robust deliveries and earnings exceeding market expectations.

Innovative Tech Partnership

As part of the new cooperation, Xpeng will integrate Huawei’s heads-up display (HUD) technology into its vehicles. This collaboration aims to bolster in-car user experience and enhance Xpeng’s competitive edge in the crowded Chinese EV market.

Earlier this year, Xpeng hinted at pursuing collaboration with Huawei to gain technological advantages. The partnership reflects a larger trend among Chinese EV manufacturers, who are aggressively implementing innovations such as smart HUDs, advanced driving features, and performance improvements to differentiate their offerings.

Market Context and Future Outlook

Strong local demand drives Chinese EV manufacturers to fiercely compete for market share through price reductions and technology enhancements. Xpeng’s strategy also includes launching new models, such as a mass-market car set to release in 2024 and an updated flagship X9 that debuted in April.

This positions Xpeng as a formidable competitor alongside established brands like Tesla (NASDAQ: TSLA) and BYD (SZ: 002594).

Investors keeping an eye on the EV market movements can utilize APIs like the Market Biggest Gainers API for real-time insights on top-performing stocks, including Xpeng.