XPeng buys DiDi’s smart car arm and launches a new electric vehicle brand. Stock rise.

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XPeng

Shares of Chinese electric car makers rose early Monday after the Chinese electric car maker said it would acquire the ride-hailing app.

Didi Global
‘s

Smart car module.

The deal, valued at HK$5.8 billion ($744 million), will see DiDi take a 3.25% stake in

XPeng
,

According to a company filing on Monday.

American depository receipts

XPeng

(Stock ticker: XPEV) rose more than 4% in pre-market trading on Monday, while its shares in Hong Kong closed up 11%.

XPeng said it plans to Launching a new brand of electric vehicles In 2024 as part of a strategic partnership with

Didi

(Didi). The brand is currently being developed under the project name “MONA” and has plans to launch an A-class smart EV model next year. XPeng said DiDi will “provide support from its mobility ecosystem” for the project with access to the nationwide mobility market.

XPeng said the new brand will target the mass market segment with a price range of around CNY 150,000 ($20,565).

XPeng’s ADRs, as of Friday’s close, are up 76% so far in 2023.

Write to Callum Keown at [email protected]