Xpeng (09868.HK) saw its stock price soar by 9.39% in pre-market trading on Friday, following news that the company's CEO, He Xiaopeng, had significantly increased his stake in the electric vehicle manufacturer. This move has been interpreted as a strong vote of confidence in Xpeng's future prospects, triggering a positive response from investors.

According to a Hong Kong Stock Exchange announcement, Mr. He purchased 3.1 million Class A ordinary shares of Xpeng on August 20-21 through his wholly-owned company, Galaxy Dynasty. The shares were acquired at an average price of HK$80.49 per share, representing a substantial investment in the company. This latest purchase has increased Mr. He's total stake in Xpeng to 18.9% of the company's issued share capital, underlining his long-term commitment to the EV maker.

The market's enthusiastic response to this news is not surprising, given Xpeng's recent performance. The company's stock has already risen by 80% in Hong Kong so far this year, buoyed by significant improvements in delivery volumes. Additionally, Xpeng's second-quarter financial results showed a notable reduction in net losses, reaching a new low since Q3 2020. These factors, combined with the CEO's confidence-boosting share purchase, have contributed to the stock's impressive pre-market surge, suggesting that investors are optimistic about Xpeng's growth trajectory in the competitive electric vehicle market.