Today, Xpeng (NYSE:XPEV) announced it has signed an agreement with the Agricultural Bank of China (ABC), and shares of XPEV stock are in the green as a result. Under the agreement, ABC will provide Xpeng with a comprehensive credit line of up to $1.1 billion. The credit line is the ABC’s largest credit limit given to an emerging Chinese automaker thus far.
Last year, Xpeng delivered 98,155 smart electric vehicles (EVs), an increase of 263% year-over-year (YOY). During Q1, the company delivered 34,561 EVs, an increase of 159% YOY.
Why Is XPEV Stock Up Today?
The large credit limit speaks to Xpeng’s market position as a competent EV producer. The capital will be used to diversify the company’s “funding channels and help optimize the efficiencies in cash management, cost control and more corporate initiatives.”
Meanwhile, CEO He Xiaopeng added, “As we pursue rapid technology and product iterations, we will continue to strengthen our product competitiveness and bring compelling EV experience to our consumers.”
Additionally, Xpeng recently announced that it would be participating in the eCar Expo in Stockholm, Sweden. The event will take place from April 29 to May 1 and showcases compelling EV technology. At the event, Xpeng will reveal its fifth-generation flying car, the XPENG X2, to the public for the first time. In addition, it will be the first time that the X2 is displayed in an exhibition in Europe. The X2 is a two-seater eVTOL (electric vertical take-off and landing) flying car that has autonomous flight capability.
XPeng Aeroht is a subsidiary of Xpeng, and is the largest flying car company in Asia. The company will also showcase its first EV for the Swedish market, the XPENG 5.
What’s Next for Xpeng?
The eCar Expo will allow Xpeng to expand its presence and brand power in Europe. In addition, XPeng is currently planning on the production of its sixth-generation flying car. The sixth generation will be able to “easily switch modes from drive to flight.” Furthermore, Xiaopeng stated that it will go into mass production and be deliverable in 2024.
Elvis Cheng, Xpeng’s managing director of the Nordic region, stated, “Ten years ago, the mass adoption of electric cars would have seemed a far-fetched idea, but today, we’re working on producing commercially viable flying cars.”
Xpeng will be a company to keep on your radar as it works to revolutionize the future of transportation.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.