Hyperdrive
VW-Xpeng Deal Is Evidence of China’s Growing EV Dominance
- German auto giant to invest $700 million in Chinese upstart
- Xpeng shares surge in Hong Kong as investors welcome tie-up
An XPeng G6 electric SUV at the Shanghai Auto Show in April.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
German auto giant Volkswagen AG’s $700 million investment in Xpeng Inc. is a vote of confidence in the electric-vehicle upstart and the latest sign of how rapidly China is starting to dominate the global transition to clean vehicles.
The deal gives VW a 4.99% stake in Xpeng and an observer board seat. The pair plan at least two new VW-badged battery-powered models for the Chinese market, with the first due to arrive in 2026. VW is fighting to halt a slide in sales in its most important market, where Tesla Inc. and local champion BYD Co. have raced ahead.