XPeng Shares Jump 4% in Premarket Trading

Tiger Newspress2022-09-26

The founder of Chinese electric-vehicle maker XPeng Inc. bought $30 million worth of its American depositary shares on the open market after they plunged this year.

XPeng Shares Jump 4% in Premarket Trading.

A company controlled by Xpeng Chairman Xiaopeng He bought 2.2 million shares at an average price of $13.58 per share on Friday, according to a statement to the Hong Kong stock exchange. After the purchase, He controls about 20.5% of Xpeng, the statement said.

The company’s New York-traded shares have slumped 73% in 2022, making it the worst of the three Chinese EV makers listed in the US, and trading below its initial public offering price. Nio Inc. is down 44% and Li Auto Inc. has fallen 22%, with the trio caught up in a broader selloff of EV startups and concern Chinese firms will be delisted from US exchanges.

XPeng reported a wider-than-expected loss in the three months to June after Shanghai’s lockdown and supply chain snarls troubled automakers. The automaker sold almost 9,600 EVs in August, well short of Shenzhen-based market leader BYD Co., which sold almost 175,000 electric cars.

XPeng is looking to its new G9 sports utility vehicle to spur growth.

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