XPeng Inc. (XPEV), a leading Chinese electric vehicle (EV) manufacturer, witnessed a significant plummet of 7.80% during Monday's trading session, as broader concerns surrounding the Chinese EV industry weighed on the stock's performance.
The selloff in XPeng's shares was part of a larger downturn in Chinese EV stocks traded in Hong Kong. This market sentiment shift was partly triggered by the Chinese government's announcement regarding new energy vehicle procurement requirements. The government stated that at least 30% of government vehicle purchases should be new energy vehicles, and this figure should reach 100% in urban areas.
While this policy aims to promote the adoption of electric vehicles, it raised concerns among investors about potential implications for the profitability and growth prospects of EV companies like XPeng. Market participants reassessed the competitive landscape and evaluated the impact of increased government involvement in the EV market, leading to a broad selloff in the sector.
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