XPeng Inc. (XPEV) shares are taking a hit on Wednesday, trading lower as part of a broader selloff in U.S.-listed Chinese companies. This downward trend follows a recent surge in these stocks after China’s Central Bank unveiled a new stimulus package aimed at revitalizing the country’s slowing economy.
The stimulus package includes a 0.5 percentage point cut in the reserve requirement ratio, a reduction in the loan prime rate and deposit rates by 0.2 to 0.25 percentage points, and a decrease in the seven-day reverse repurchase rate to 1.5%. Furthermore, the central bank’s plan lowers the minimum down-payment ratio for second-time home buyers to 15%. This comprehensive package is seen as a crucial step by the Chinese government to counter the economic slowdown.
Meanwhile, XPeng is making waves in the electric vehicle (EV) market with the introduction of a new variant of its X9 MPV (Multi-Purpose Vehicle). The X9 610 Max, priced at RMB 379,800 ($54,090), is RMB 20,000 more expensive than the base X9 610 Pro but comes equipped with two LiDAR sensors for its advanced XNGP driving feature. This new variant is designed to broaden XPeng’s customer base and give its sales a boost.
Despite the stock’s recent decline, XPeng’s overall performance in 2024 has been positive. The company delivered 77,209 Smart EVs in the first eight months of the year, representing a 17% increase compared to the same period last year. Monthly deliveries of the X9 have consistently ranged between 1,000 and 2,000 units, with August seeing 1,450 units delivered, according to CnEVPost data.
As XPeng navigates the evolving market landscape, the company’s focus on innovation, particularly in autonomous driving technology, will likely play a key role in its future success. The X9’s LiDAR-equipped variant is a testament to this commitment and could prove to be a significant driver of growth for the company.
