XPeng Inc. (XPEV) experienced a pre-market plunge of 5.04% on Friday, caught in the broader selloff of Chinese stocks amid concerns over disappointing corporate earnings and China's economic growth outlook.

The decline in XPeng shares came after a slew of lackluster results from major Chinese companies, including Alibaba, Baidu, and PDD Holdings, underscored the weakness in China's economic recovery. The disappointing earnings reports and downbeat guidance from these companies heightened investor jitters about corporate profitability and China's growth prospects.

Investors rapidly lost patience and opted to exit equity markets, as the fiscal measures approved by Chinese lawmakers to tackle the hidden debt crisis at local governments fell short of market expectations for more robust stimulus efforts. The geopolitical tensions between the U.S. and China, with the Republican Governor of Texas ordering state agencies to cease investing in China, further added to the bearish sentiment.