$XPeng Inc.(XPEV)$reported a second-quarter loss that is wider than they expected by the market, sending its stock price plunging slmost 11% overnight, and dragging the other Chinese EV makers along.

Its EV deliveries have fallen way short on theback of a slowdown in the Chinese economy.

I expect more downside on its stock price which may retest its 52-week low of $18, especially if market sentiments turn for the worse as the Fed continues to hike interest rates.

The rising rates are going to increase the borrowing costs of Xpeng in order to sustain growth, and put pressure on its valuation made up mostly of distant cash flows, as the company is still highly unprofitable.

Hence, I prefer to watch on the sideline. In fact, I prefer $Tesla Motors(TSLA)$to other EV makers, as Tesla enjoys early mover advantage and has a strong lead in the market.

@TigerWire