Why Xpeng (XPEV) Stock Is Rallying Today

Chinese electric vehicle maker Xpeng (XPEV) is climbing 9% in early trading after the automaker made a deal that will allow its customers to utilize the EV charging network of British oil giant BP (BP) in China.

Under the arrangement, which was outlined in a memorandum of understanding (MOU) between the companies, BP’s customers will also be able to use Xpeng’s chargers.

A driver standing in front of an electric car, demonstrating the company’s electric vehicle leasing capabilities.

BP has over 1,000 charging stations and 23,000 chargers in China, while Xpeng offers over 2,000 charging stations with more than 10,000 chargers.

Also noteworthy is that the companies agreed to work on developing ultra-fast chargers while partnering in other areas such as solar energy and energy storage.

Xpeng’s Recent, Similar Deal With Volkswagen

On Jan. 6, Xpeng and Volkswagen (VWAGY) announced that they had signed an MOU to make the chargers operated by both automakers in China accessible to the two firms’ customers. As a result, the companies are poised to form a large, single network of more than 20,000 chargers in 420 cities in the Asian country.

According to the companies, the collaboration will result in “one of the largest super-fast charging networks in China.”

The Recent Price Action of XPEV Stock

Heading into today, the shares have fallen 8% in the last month, but they have climbed 6% in the previous three months.

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READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: The author owns shares of XPEV but has no plans to trade them in the next 48 hours. This article is originally published at Insider Monkey