Why XPeng Inc. (XPEV) Went Down On Tuesday

We recently published a list of 10 Stocks Got Wiped Out. Are You Holding Any? In this article, we are going to take a look at where XPeng Inc. (NYSE:XPEV) stands against other worst-performing stocks.

XPeng declined by 3.35 percent on Tuesday to finish at $19.33 apiece, as investors sold off positions to mitigate risks from renewed calls of delisting Chinese companies, while continuing to digest news of lower electric vehicle prices amid heavy competition.

Last week, giant EV-maker BYD announced that it was offering discounts on 22 of its electric and plug-in hybrid models until the end of June. The news triggered concerns of a cut-throat competition in the electric vehicle industry.

In recent news, XPeng Inc. (NYSE:XPEV) achieved a 331-percent expansion in vehicle deliveries in the first quarter of the year, at 94,008 from 21,821 in the same period last year.

Net loss narrowed to 660 million yuan from 1.37 billion yuan in the same period in 2024, while revenues increased by 141.5 percent to 15.81 billion yuan from the same period a year ago.

Meanwhile, top Republican financial officers from 21 states have asked Securities and Exchange Commission Chairman Paul Atkins, through a letter dated May 20, to review the possibility of delisting Chinese firms from US exchanges in a bid to protect US investors.

A close-up of a luxury electric sports sedan, its sleek body reflecting the energy of progress.

The companies were accused of not complying with federal audit requirements, audit deficiencies, crackdowns on firms that do due diligence research on Chinese companies, alleged stock manipulation, as well as national security concerns.

Overall, XPEV ranks 8th on our list of worst-performing stocks. While we acknowledge the potential of XPEV, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XPEV and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.