XPeng (XPEV) rallied on Monday after Morgan Stanley issued positive remarks about its test ride in Guangzhou of the electric vehicle maker’s VLA 2.0 autonomous driving system.
VLA 2.0 is described as XPeng’s (XPEV) next-generation “Vision-Language-Action” autonomous driving large model, redesigned as an end-to-end vision-to-action AI stack aimed at enabling Level 4-grade, human-like autonomous driving and broader embodied AI applications.
Morgan Stanley analyst Tim Hsiao noted the autonomous test ride was impressive, notably smooth, and more human-like in control. “The test ride covered a wide range of real-world scenarios, including narrow suburban roads, busy intersections, roundabouts, and unprotected U-turns, showcasing XPeng’s efficient and more human-like performance under complex traffic conditions,” he updated.
VLA 2.0 is scheduled to roll out on Xpeng’s (XPEV) P7, G7, and X9 Ultra models in the second half of this year. Hsiao highlighted that XPeng (XPEV) intends to deploy VLA 2.0 on its international models in 2027, which is seen as supporting a first-mover advantage among autonomous vehicles and attracting potential global OEM partnerships.
Shares of XPeng (XPEV) were up 5.9% in late morning trading to $18.35 vs. the 52-week range of $15.38 to $28.24.