XPeng Inc. (XPEV) experienced a significant plummet of 5.08% in its stock price during the pre-market trading session on Thursday. This decline came amidst growing concerns about intensifying competition in China's electric vehicle (EV) market and an uncertain domestic outlook for 2025.
According to industry reports, Chinese EV makers, including XPeng, faced a late-2024 sales boom that is expected to give way to a rocky 2025. While industry leaders like BYD Co. reported record deliveries, cementing their status as best-selling brands, smaller players like XPeng fell short of their targets despite the end-of-year pick up in demand.
The mixed results signal another year of fierce competition for China's auto market, with analysts warning of growing trade tensions with key trading partners like the European Union, which could impact EV exports. Furthermore, domestic sales are expected to play a more significant role in 2025, putting additional pressure on EV makers to roll out newer models or tech-laden offerings to cater to China's increasingly picky buyers.
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