XPeng, a Chinese electric vehicle (EV) manufacturer, has seen its shares rise by 6.3% in pre-market trading following the announcement of launching a cheaper EV brand, amid fierce competition in China's EV market, according to Reuters. This move is seen as an effort to boost sales and attract more consumers looking for affordable EV options. The company's stock jump was also attributed to an earnings beat, driven by margin improvement. Despite this positive development, XPeng forecasted its quarterly revenue to be below estimates due to the competitive market environment. This news has implications not only for XPeng but also for other players in the EV market, including Tesla, as it indicates a shift towards more affordable EV offerings.