Shares of Chinese electric vehicle maker XPeng plunged over 5% on Monday amid broader market weakness and concerns over the potential impact on the company if former U.S. President Donald Trump regains the White House in 2025.
According to reports, analysts believe Trump's previous threats of higher tariffs on Chinese imports could dampen the outlook for XPeng and other Chinese EV firms looking to make inroads into the U.S. market. While the Biden administration has been more welcoming, bipartisan support exists for protecting American automakers from Chinese competition. Analysts suggest XPeng may need to move operations to the U.S., lobby for tariff exemptions, or divert to new markets if Trump returns and follows through on his protectionist stance.
The sell-off in XPeng shares also came as the broader Hong Kong market extended losses on Monday, with the Hang Seng Index dropping below 20,000 on disappointing economic data from mainland China. However, auto stocks largely bucked the trend, buoyed by solid October sales figures as pro-growth policies boosted demand.
