It’s been a rough week for electric vehicle (EV) stocks. Indeed, investors in Xpeng (NYSE:XPEV) and XPEV stock have certainly felt the pain, with another decline of 2% at the time of writing capping off what’s been a difficult few trading days.

Among the key catalysts driving XPEV stock lower this week has been some notable selling pressure from institutional investors. One of the more significant sellers of Xpeng this past quarter has been Tiger Global Management. In a recent 13-F filing detailing the fund’s moves in the second quarter, Tiger Global reported it slashed its XPEV holdings to 4.36 million shares from 13.72 million shares. That’s a reduction of more than two-thirds of this position, signaling the fund is shifting its focus away from higher-risk stocks to ones with more manageable risk.

Other China-based stocks held in the fund also saw reductions this past quarter. Accordingly, many investors may take this as a signal Tiger Global is growing less bullish on Asian markets for growth.

Let’s dive more into what investors should make of this move.

XPEV Stock Tumbles Amid Heightened Selling Pressure

Now, just because one individual fund sells shares in a particular company, it doesn’t mean everyone should jump ship. This is simply the moves one large asset manager made. Indeed, other institutional investors chose to add XPEV positions during this past quarter, given how far this stock has fallen.

That said, Tiger Global is a behemoth in the hedge fund world. Once holding more than $100 billion in assets under management, this fund has shrunk considerably. Net outflows of more than $41 billion this past quarter and a significant loss from underperforming assets (another $37.7 billion) has resulted in Tiger Global’s AUM dropping to around $12 billion.

Now, $12 billion is still $12 billion. And as far as growth investing firms go, Tiger Global is among the key household names. Accordingly, growth investors watch what this fund does on a quarter-by-quarter basis very closely.

For Chase Coleman’s fund, perhaps this is the end of an era of investing in this particular EV stock. Or perhaps it’s the limitations of fund outflows that’s led to this decision. Investors will have to decide for themselves.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.