One of XPeng’s (NYSE:XPEV) leaders is stepping down from his position. Today, the Chinese electric vehicle (EV) maker released a statement announcing that Dr. Xinzhou Wu, the company’s Vice President of Autonomous Driving, had submitted his resignation for “personal and family reasons.” Dr. Liyun Li, Senior Director of the AD team, will take Wu’s place at the top of this important division.
XPeng seems to be prepared for this transition as it looks to continue scaling operations in the area of autonomous driving. While XPEV stock is struggling today, its performance may also be more likely due to negative market momentum than the resignation news.
Does this mean that XPeng will recover from the current volatility and continue its winning streak? Let’s take a closer look at the company and assess what investors can expect.
What’s Happening With XPEV Stock?
It hasn’t been an easy week for XPeng, although the news hasn’t been all bad. As of this writing, XPEV stock is down about 5% for the day, displaying clear volatility. Its current trajectory makes it hard to predict where shares will go from here. However, many of its Chinese EV stock peers are struggling as well; both Nio (NYSE:NIO) and Li Auto (NASDAQ:LI) are dipping by about 1% as of this writing. This is exactly the type of market momentum that can quickly shift, though.
Dr. Wu’s department isn’t likely to shake things up too much at XPeng. In the statement, the company stresses that “Dr. Li has been leader of the XNGP project team and prepared for the transition for a long period.” If that’s true, Wu’s transition may have been in the works for months, giving the company ample time to prepare.
In a recent LinkedIn post, XPeng Chairman and CEO Xiaopeng He reflected on his time working with Wu:
“Our shared vision of full-stack in-house development has propelled XPENG to its leading position today, with the best mass-produced ADAS system in China. Throughout the transition, Xinzhou and I have worked closely to ensure a seamless handover. Dr. Liyun Li, who has been leading the XNGP project and now our entire AD team, and myself will continue to drive our autonomous driving initiatives.”
The CEO also added that XPeng is focused on continued growth, citing the recent partnership with automotive giant Volkswagen (OTCMKTS:VWAGY). If the company continues these strategic growth missions, XPEV stock will likely continue rising as the Chinese EV boom and AD rush propel shares higher.
On the date of publication, Samuel O’Brient 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.
