Carla Lee wrote a post · Dec 18, 2023 15:37

Chinese EV-Maker XPeng Plunges After Alibaba Plans Stake Sale

Alibaba to cut stake to 7.5% from 10.2% for about $391 million
XPeng’s US shares fell as much as 8.6% after disclosure

“Consistent with our capital management objectives, we sold a portion of our holdings in XPeng Inc., taking our stake from 10.2% to 7.5%,” an Alibaba spoksperson said in a statement. “We have a strategic relationship with XPeng, which is one of China’s leaders in electric vehicles. We believe in XPeng’s prospects and look forward to continued cooperation with the company.”

Alibaba shares rose as much as 4.2% on Friday, after having languished this year. Its market value was overtaken by rival PDD Holdings Inc. earlier this month.

XPeng reported a wider-than-expected third-quarter loss last month, and even with the record fourth-quarter deliveries it will ship fewer than 150,000 vehicles for the year — a fraction of rivals such as BYD Co.

According to SEC Filing Form 144, #alibaba trimmed its #XPeng stakes of 25m ADS at $15.65 caused $Xpev stock price significant plunged from about 19% at IPO in 2020 to 7.5% by December 2023, reflects a strategic capital management decision. This move aims to optimize Alibaba's investment portfolio, focusing on improving capital returns and enhancing shareholder value, rather than a change in its view of XPeng's potential.