NIO Inc. (NYSE:NIO) shares are trading higher after peer Chinese electric vehicle company Xpeng raised $500 million ahead of a reported IPO.

Xpeng Motors Technology Ltd. said it raised nearly $500 million in a Series C+funding round, even as electric vehicle sales see a slump in mainland China.

Nio operates in China's premium electric vehicle market. The company designs and jointly manufactures, and sells smart and connected premium electric vehicles.

Nio's stock was trading up 10% at $12.26 per share on Monday at the time of publication. The company has a 52-week high of $16.44 and a 52-week low of $1.19.