Here's Why XPeng (XPEV) Stock Is Moving

XPeng Inc - ADR XPEV shares are trading lower by 1.41% to $16.05 Monday morning. Shares of Chinese EV stocks are trading lower after competitor Tesla Inc lowered some Model Y prices in China.

Tesla's move to lower Model Y prices creates a direct competitive challenge for XPeng in the Chinese EV market. Investors might be concerned about XPeng's ability to maintain market share against a well-established and globally recognized competitor like Tesla.

In response to Tesla's price cuts, XPeng might need to adjust its own pricing strategy to remain competitive. This could potentially impact XPeng's profit margins, as lowered prices might not compensate for potential revenue decreases per unit.

What Happened?

Tesla announced in a Weibo post that it has cut the starting prices on both Model Y Long Range and Performance versions by RMB 14,000. While the Long Range will now start at RMB 299,900 ($41,403), Performance will now be priced at RMB 349,900 ($48,306), the post said.

The company also announced a limited-time insurance subsidy for inventory Model 3 rear-wheel drive vehicles of RMB 8,000 starting Monday...Read More

According to data from Benzinga Pro, XPeng has a 52-week high of $25.91 and a 52-week low of $6.18.