Xpeng Inc shares rose 4.5% in morning trading Tuesday as investors focused on the company's technology licensing business following a report on its partnership with Volkswagen.

The joint venture between Volkswagen and Xpeng launched the UNYX 08 SUV in April, which sold an average of 267 vehicles per month through August. Volkswagen had set an internal target of 3,622 monthly units for the model.

Volkswagen is moving forward with a second vehicle from the partnership, the UNYX 09 sedan. The model includes Xpeng's VLA intelligent driving system and recently entered presales with pricing starting at approximately 199,900 yuan.

The stock had been trading near its 52-week low of $9.18 reached earlier this month. Analyst consensus price targets for the shares range between $18 and $22.

Xpeng is scheduled to report third-quarter 2026 earnings in mid-November. The company delivered 118,390 vehicles in the third quarter, representing a 15% increase from the second quarter.