Shares of XPeng Inc. (XPEV) surged by over 10% in pre-market trading on Tuesday, as the electric vehicle maker rallied along with other Chinese stocks on hopes of a gradual approach by the incoming US administration to imposing tariffs on Chinese goods.

The pre-market rally was driven by reports that members of President-elect Donald Trump's economic team discussed gradually ramping up tariffs on Chinese imports, easing concerns over potential sharp inflation rises and allowing the Federal Reserve more room to ease interest rates.

The possibility of a gradual tariff rollout has stirred optimism among investors, given Trump's previous threats to impose levies of up to 60% on Chinese imports. Such a plan could ease inflationary pressures and pave the way for the Fed to adopt a more dovish stance on interest rates, providing a potential tailwind for markets.