Xpeng (NYSE:XPEV) stock is slipping on Tuesday after the electric vehicle (EV) maker cut the prices of its cars to keep up with competitors.
Starting the cuts off is the P7 sedan with a new starting price of about $31,015, a roughly 13% drop in price. To go along with that, Xpeng cut the price of its P5 and G3i by between 10% and 13%, depending on the model.
Xpeng announced these price cuts via its WeChat. A spokesman for the company also told Reuters that the move was part of Xpeng’s plan to “make intelligent vehicles more accessible” with “more competitive prices.”
XPEV Is Challenging EV Rivals in China
Investors will note that the Xpeng price cuts come after similar moves from the company’s competitors in China. Recently, EV giant Tesla (NASDAQ:TSLA) reduced its prices in China and the U.S. to draw in more customers.
These reduced prices for EVs come at a time when inflation is weighing on car companies. This has resulted in less luxury spending as consumers think more carefully about how to allocate their funds.
However, that doesn’t mean it’s the best for XPEV stock. Shares are sliding on the price drop news with a 6.4% decline as of Tuesday morning.
Investors seeking out all of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Tuesday! That includes everything happening with shares of Mullen Automotive (NASDAQ:MULN), Viveve Medical (NASDAQ:VIVE) and MGO Global (NASDAQ:MGOL) stock today. You can read up on all that news at the following links!
More Tuesday Stock Market News
- Why Is Mullen Automotive (MULN) Stock Down 11% Today?
- Why Is Viveve Medical (VIVE) Stock Down 69% Today?
- Why Is MGO Global (MGOL) Stock Up 37% Today?
On the date of publication, William White did not hold (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.