U.S.-listed shares of XPeng (XPEV) - Get Free Report rose Wednesday after the Chinese electric vehicle maker said that it has signed an agreement to build the Phase 2 expansion project of the XPeng Zhaoqing Smart EV Manufacturing Base located in Guangdong Province.
Shares of Guangzhou company on Wednesday rose 6% to $40.14 at last check.
The expansion project will aim to boost the design production capacity at the Zhaoqing Base from 100,000 units to 200,000 units per year with the financial and land use support from the local government, the company said.
“The expansion will position XPeng well in capturing the anticipated increasing consumer demand for its smart EVs,” according to a company statement.
XPeng has delivered about 58,000 vehicles over the past 12 months.
In addition to Zhaoqing, XPeng is building manufacturing capacity in Guangzhou and Wuhan.
In June, XPeng said it was launching its Hong Kong public offering as the Chinese electric vehicle maker looks to raise as much as $1.97 billion.
Separately, earlier this month, President Joe Biden signed an executive order aimed at making half of all new vehicles sold in 2030 electric, a move made with backing from the biggest U.S. automakers.