(Yicai) Nov. 12 -- Chinese new energy vehicle startup Xpeng Motors saw its market capitalization reach HKD202.2 billion (USD26 billion), exceeding traditional car giant Geely Automobile Holdings at HKD183.3 billion yesterday.

After surging by 18 percent yesterday, shares of Xpeng [HKG: 9868] ended down 3 percent at HKD105.20 (USD13.54) apiece in Hong Kong today, giving it a market cap of HKD200.5 billion. Geely Auto [HKG: 0175] closed 2.5 percent lower at HKD17.67 (USD2.27).

The surge of Xpeng's share is mainly attributed to the market's optimistic expectations for the carmaker's robot technology and commercial application prospects, Yu Fenghui, an advisor with the Top 100 Hong Kong Listed Companies Research Centre, told Yicai.

Xpeng launched several new artificial intelligence products and applications earlier this month, including the Vision-Language-Action model, a robotaxi, the Xpeng Iron humanoid robot, and flying cars, while starting the pre-sale of the X9 super extended-range seven-seater electric vehicle.

The Xpeng Iron has gained extensive market attention and recognition from investors thanks to its smooth and natural movements and advanced AI, Yu pointed out, adding that this should be the direct reason for the stock jump yesterday.

The sharp rise in Xpeng's share price yesterday was likely the result of a combination of recent favorable factors, Li Zeming, investment director of Red Ant Capital, said to Yicai. While most NEV startups are facing sales pressure, Xpeng saw its sales jump last month from a year earlier and from September, with its main business performing impressively, Li pointed out.

Guangzhou-based Xpeng has also been releasing positive information in the emerging technology field, and although its newly launched smart products are still far from hitting the market, they still offer room for imagination to investors, Li noted.

In addition to its vehicles winning the favor of consumers, Xpeng's AI and robotics business is opening up more imagination space for investors, leading some to label it a "Tesla imitator".

"Innovative companies will eventually arrive at the same destination though different paths," said He Xiaopeng, chairman and chief executive officer of Xpeng. "Tesla is a great company, and I believe there will be more similar great companies worldwide."

Tesla CEO Elon Musk recently gave his approval about a video of Xpeng's robot and predicted that the US car giant and Chinese NEV makers will dominate the market, voicing his strong respect for Chinese rivals.

Editors: Tang Shihua, Martin Kadiev