XPeng Stock Jumps After Chief Executive Boosts Shareholding
XPeng stock jumped in Hong Kong after the Chinese automaker disclosed that its chief executive bought over 2 million of the company's shares.
The company's shares were trading up 5.9% at HK$28.75 early on Mon in Hong Kong. The Chinese electric-vehicle maker said in a stock exchange filing that its CEO, Xiaopeng He, bought 1 million H-shares at an average price of HK$27.13 each, and 1.42 million American depositary shares at an average price of US$7.02 each over Aug. 21-Aug. 23.
XPeng's board said the stock purchase shows the chief executive's confidence in the company's growth and prospects, adding that he plans to increase his shareholding further.
Nomura analyst Joel Ying said the move could reflect the CEO's confidence in the launch of two upcoming models, the fully electricMona M03 and the P7+ sedan. If the two models give a big boost to XPeng's deliveries, they could become key shipment catalysts for the rest of 2024, Ying added.
XPeng is set to announce pricing for the Mona M03 at its launch on Aug 27, while the P7+, which has a pure vision advanced driver-assistance system similar to Tesla's full-service driving system, is due to be rolled out in the fourth quarter.
Since its founding in 2014, XPeng has made a name for itself as one of China's top EV makers, but has yet to turn a profit. Analysts will be watching the performance of its new releases closely to see if it's on the path to profitability.
XPeng maintained a double-digit gross margin in the second quarter, one of the few Chinese automakers to have done so, a feat it attributed to cost controls and its strategic partnership with Germany's Volkswagen. XPeng also more than halved its net loss for the quarter from a year earlier due to higher revenue from car sales, and the VW collaboration.
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102158192 : Compare to how much he made the company lost in last 10 years, this is nothing