Robert Way
XPeng (NYSE:XPEV) was one of the biggest decliners in the electric vehicle sector in Tuesday morning trading to cool off from a recent hot stretch.
Seeking Alpha contributor Juxtaposed Ideas noted recently that ongoing price wars in China have naturally impacted XPeng’s deliveries and margins, triggering further headwinds for forward execution. However, the long-term growth potential for the EV upstart is seen supporting share price at the $7.00 level.
The short interest level on XPEV is at 11.02% of total float, which is higher than the short interest percentages for rivals Nio (NIO) and Li Auto (LI). The electric vehicle stock also has a lower Seeking Alpha Quant Rating and score than its peers.
Shares of XPEV were down 7.73% at 11:05 a.m. and traded as low as $10.12 earlier in the session.
Sector watch: EV stocks are in focus as investors weigh Tesla deliveries, pricing war and OPEC actions.
