The U.S.-listed shares of XPeng Inc. plunged Friday, as price cuts by Tesla Inc. in China soured sentiment toward China-based electric vehicle makers.
The stock
XPEV,
was down as much as 17.2% at its intraday low of $9.85, before recovering slightly to be down 14.5% in midday trading. It was still in range of breaking its record drop of 15.1% on March 24, 2021.
The selloff follows Tesla’s disclosure that it had cut prices for its Model 3 and Model Y vehicles in China by more than 10%, the second price cut in three months. It also bucks the rally in the broader stock market, as the S&P 500
SPX,
rose 1.9%.
XPeng shares, which went public in August 2019, were still up 2.4% to start the year, after soaring 19.7% over the past three days and running up 26.7% amid a five-day win streak.
The stock’s rally this week followed the company’s report earlier in the week showing that December and fourth-quarter deliveries fell sharply from a year ago, even though Nio Inc.
NIO,
and Li Auto Inc.
LI,
reported big year-over-year increases.
Tesla’s stock
TSLA,
swung to a gain of 0.5% in midday trading, reversing an earlier intraday loss of as much as 7.7%.
Meanwhile, Tesla’s price cuts sent Nio’s stock sinking as much as 12.5% intraday Friday before it pared some losses to be down 7.1% in midday trading. After climbing 12.8% the past two days, the stock was still up 3.4% this week, after plummeting 69.2% in 2022.
Li Auto’s stock dropped 9.3% but was down as much as 14% earlier. The stock has gone up 25% amid a five-day win streak through Thursday.