Xpeng's shares experience a 6% increase following the launch of its mass-market car.

• The price of Xpeng shares increased after the Chinese electric car company announced that its new mass-market Mona brand would be priced at $16,812, significantly lower than Tesla's prices.
• The Mona M03 electric coupe received over 10,000 orders in just 52 minutes after its official launch in Beijing on Tuesday evening.
• Xpeng shares remain more than 45% lower for the year so far.

The Chinese electric car company launched its new mass-market Mona brand on Tuesday with prices starting at $16,812, far below that of Tesla's cheapest Model 3, causing shares to rise.

In Beijing, the Chinese automaker announced that orders for the Mona M03 electric coupe surpassed 10,000 within 52 minutes of its official launch.

On Tuesday, Xpeng's U.S.-listed shares gained 6.5% in New York trading, while its Hong Kong-listed shares increased by nearly 2% early Wednesday morning.

"Michael Dunne, founder and CEO of consulting firm Dunne Insights, stated on CNBC's "Squawk Box Asia" that China's position as the world center for automotive manufacturing is being solidified with cars priced under $20,000."

He stated that China is the most cost-effective country for producing cars globally.

On Monday, Xpeng experienced significant growth after it was revealed that He Xiaopeng, the company's founder and CEO, had purchased at least 1 million shares of its U.S. and Hong Kong stock.

Nearly $10 million was spent in total U.S. purchases, as per the filing, which granted He approximately 18.8% of the company's total issued share capital.

Xpeng shares have lost more than 45% so far this year.

On Tuesday, Tesla's shares closed nearly 2% lower, while the shares of Chinese electric car companies rose, and those of BYD closed mildly lower.

— CNBC's Sheila Chiang contributed to this report.