Besides its higher projected growth, investors have been assigning a premium to the company due to its progress in the autonomous driving space. Xpeng currently sells the G3 SUV and the P7 sedan, and its new P5 compact sedan is likely to hit the roads later this year. Although Xpeng's gross margins have improved, rising to about 11% over Q1, versus negative levels a year ago, they are still below Nio's margins.