What's Going On With XPeng (XPEV) Stock?

XPeng Inc – ADR XPEV shares are trading higher by 4.8% to $8.77 during Tuesday’s session. The stock is rebounding following China's announcement of a lower-than-expected GDP growth of 4.7% for the second quarter. Analysts had predicted a growth rate of 5.1%.

The economic report indicates a slowdown in retail sales growth and rising unemployment, which can lead to reduced consumer confidence. When consumers are less confident about their economic prospects, they are less likely to make big purchases, such as cars. This directly impacts sales for companies like XPeng.

The economic report also mentions deflationary pressures leading to price cuts on various goods, including cars. If deflation is forcing car prices down, this can squeeze profit margins for XPeng and other auto manufacturers, making their stocks less attractive to investors.

Read Also: Mohamed El-Erian Notes China's Q2 GDP Growth Disappoints At 4.7% Amid Real Estate Woes

How To Buy XPEV Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in XPeng’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, XPEV has a 52-week high of $23.62 and a 52-week low of $6.55.