XPeng CEO buys 2.2 million ADS as the EV maker’s stock slumps after new model re...

XPeng CEO buys 2.2 million ADS as the EV maker’s stock slumps after new model release

XPeng CEO buys 2.2 million ADS as the EV maker’s stock slumps after new model release

2 hours ago

On September 26, He Xiaopeng, the co-founder and CEO of Chinese EV maker XPeng bought 2.2 million ADSs(American Depositary Share) through Simplicity Holding Limited, a holding company wholly-owned by He, according to an XPeng announcement.

After buying 2.2 million ADSs at an average of $13.58, He now owns approximately 20.5% of the company.  “The Board believes that the Acquisition demonstrates the strong confidence of Mr. Xiaopeng He towards the prospects and growth potential of the Company, as well as his long-term commitment towards the Company,” said XPeng in its statement.

XPeng shares rose as high as 11% in Hong Kong and nearly 5% on NYSE, as He’s move showed his confidence in the company.

The company’s stock had drifted far from its record high in November 2020, when it reached $70 and surpassed Baidu’s market value at the time. On September 22, XPeng’s stock slumped near 12% after it launched its new SUV model G9 a day earlier.

As a high-end model of XPeng, G9, referred to as the“ new benchmark for smart EVs” by He, is equipped with full scenario ADAS(Advanced Driver-Assistance System), dubbed XNGP, and fast charging —  on certain versions of the model, it could take as little as 15 minutes to charge from 10% to 80%.

However, these fancy functions do not come with the standard trim of G9, which is priced at around 300,000 RMB. Potential buyers found the nomenclature and arrangement of the G9 trims confusing and unfair, which resulted in dissatisfaction and cancelation of pre-orders, according to TMTPost, which all contributed to the slump of XPeng shares. The company updated the options and prices of G9 trims on September 23. Despite the change, the EV is expected to deliver on schedule in China in October and to Europe in 2023.

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