XPeng rallies after highlighting its AI and autonomous driving upside

XPeng (NYSE:XPEV) rallied on Thursday after the Chinese electric vehicle maker held its annual AI Day event in Guangzhou, which featured updates on autonomous driving initiatives.

The company also officially launched the P7+ model, which is a highly anticipated AI-defined smart electric sedan. The model can be considered a competitor with Tesla’s (TSLA) Full Self-Driving software, which is expected to go live in China early next year.

The XPeng model abandoned LiDAR sensors in favor of the AI Eagle-Eye Vision intelligent driving system, which was noted to enhance perception distance by 125% and recognition speed by 40%. The P7+ interior boasts a 15.6-inch screen with an AI Tianji intelligent system and Qualcomm 8295P chip4.

The P7+ offers two battery options: 60.7kWh and 76.3kWh, providing ranges of 620km and 710km respectively. When using fast charging, the P7+ can be charged to 80% in 20 minutes.

The P7+ uses a single-motor configuration with 180kW or 230kW power options4. The car includes advanced features like a vision-only autonomous driving system, 20-speaker Dynaudio sound system, and a spacious interior with reclining rear seat. Pricing for the P7+ starts at RMB186,800 ($26,100).

XPeng (XPEV) said early demand for the P7+ is strong.

Shares of XPeng (XPEV) were up 16.8% in midday trading to lead the auto sector.