LIZHI (NASDAQ: LIZI), a leading online UGC audio community and interactive audio entertainment platform in China, saw its shares double after announcing its cooperation with Tesla's Chinese rival XPeng Motors.
Through the cooperation, XPeng integrates LIZHI's in-car audio content product into its in-car intelligent operating system. The product has been launched in this week.
The collaboration aims to accentuate the complementary strengths of both parties and strives for a win-win situation, LIZI said in a statement.
For LIZHI, under the collaboration, it may make its premium content offerings and AI-empowered content discovery and recommendation system accessible to XPeng growing customer base comprised of tech-savvy middle-class consumers.
As of September 30, 2020, there have been over 234 million podcasts uploaded to the LIZI platform.
"We are confident that our key strengths built on our advanced audio technologies, our AI-enabled content recommendation and distribution systems and massive content portfolios will add value to XPeng Smart EV users," said Jinnan Lai, Founder and CEO of LIZHI.
The in-car audio initiatives will be important part of LIZI's strategic effort to diversify business model to gain traction with a wider user base, Lai said adding that the company is well positioned to utilize on its strengths delivering a powerful online audio experience to users and capture growth in this emerging smart in-car audio services space.
LIZI shares soared more than 100 percent in pre-market trading on Wednesday, while XPeng was down 2.68 percent.