XPENG-W (09868) saw its stock price plummet 5.01% during intraday trading on Thursday, reflecting significant selling pressure.
The sharp decline comes amid a severe downturn in the domestic auto industry, with January-to-May cumulative vehicle sales declining over 19.5% year-over-year, signaling deteriorating sector fundamentals. Market capital has been rotating toward high-growth technology sectors, leaving the auto sector broadly underperforming.
At the company level, XPeng reported disappointing Q1 results with a net loss of RMB 1.784 billion, revenue declining 17.6% year-over-year, and vehicle deliveries plunging 33.3%, eroding market confidence in near-term profitability recovery. Additional sector-wide pressures include intensifying price wars compressing margins and surging raw material costs, particularly lithium carbonate prices which have risen significantly. The broader negative sentiment was also reflected in other Chinese stocks, with peer Li Auto-W falling 3.92% on the same day.
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