Xpeng's shares surge as Didi sells smart car arm in $744 million deal

Chinese electric car company Xpeng is acquiring Didi's smart electric car development business in a $744 million deal, making Didi a strategic shareholder of Xpeng. The two companies plan to collaborate in various areas, including marketing, financial and insurance services, charging, robotaxis, and international expansion. Xpeng's shares surged over 13% following the announcement. With the new assets from Didi, Xpeng aims to launch an affordable electric car under a new mass market brand next year. This deal comes as companies seek opportunities in China's competitive electric car market. Xpeng had previously signed a deal with Volkswagen to develop electric cars for China. Both Xpeng and Didi have been operating at a loss, but the partnership is expected to strengthen their positions in the market.