Xpeng (XPEV) Stock Slips as Other Chinese Stocks Delist

  • XPeng (XPEV) revealed details on a new SUV model yesterday.
  • On the other hand, XPeng could potentially face a delisting threat from the New York Stock Exchange.
  • Nervous traders are selling XPEV stock today.
XPEV stock - Xpeng (XPEV) Stock Slips as Other Chinese Stocks Delist

Source: Koshiro K / Shutterstock

There’s a good-news, bad-news situation going on with XPeng (NYSE:XPEV) today. The good news is that XPeng just disclosed details regarding its luxurious G9 model SUV. However, XPEV stock still fell today due to some bad news. Apparently, some Chinese companies revealed their plans to delist from American exchanges.

Sometimes, nations don’t see eye-to-eye on certain issues, and this can affect entire segments of stocks. Likely due to friction between U.S. and Chinese regulators and officials, a number of state-owned companies in China recently stated their plans to delist from American exchanges, such as the New York Stock Exchange.

These Chinese businesses include China Life Insurance (NYSE:LFC), PetroChina (NYSE:PTR) and China Petroleum & Chemical (NYSE:SNP). These stocks all fell today, both on the Nasdaq Golden Dragon China Index and on the NYSE.

Jian Shi Cortesi, investment director at GAM Investment Management in Zurich, Switzerland, apparently envisions a continuation of this trend. “We expect more Chinese firms to voluntarily delist from the US or move their primary listings to Hong Kong,” Cortesi stated.

XPEV Stock Declined Despite a New SUV Reveal

Thus, anxiety over XPeng’s possible future delisting from the NYSE weighed heavy on today’s traders. By 11:30 a.m. Eastern, XPEV stock was down more than 2%.

Not all of the news surrounding XPeng is negative, though. Just yesterday, XPeng unveiled its new SUV, the G9. This electric vehicle (EV) model is expected to be roomy and luxurious, providing “VIP lounge-style space.”

At the same time, the G9 could be a real powerhouse among EV models. Reportedly, it will be “the world’s fastest-charging mass-produced EV, allowing drivers to add up to 200 km of CLTC range in just five minutes.”

In other words, XPeng is clearly seeking to shatter any myths that electric SUVs are slow and clunky. Nevertheless, financial traders don’t seem to have the G9 on their minds. Rather, they’re likely anxious about the possibility of XPEV stock getting booted from the NYSE.

So, there’s the mix of good and not-so-good news. In the coming days, the buyers and sellers will have to figure out which is more important for XPeng: a U.S. listing, or the introduction of a potentially game-changing electric SUV.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/08/xpeng-xpev-stock-slips-as-other-chinese-stocks-delist/.

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