XPeng (XPEV) Stock Surges On US–China Tariff Easing: What's Going On?

Shares of Chinese electric vehicle (EV) maker XPeng Inc – ADR XPEV surged 7.7% to $21.15 Monday morning following news that the U.S. and China reached a temporary truce in their ongoing trade dispute, agreeing to significantly roll back tariffs on most goods for 90 days.

What To Know: XPeng, an EV manufacturer based in Guangzhou, stands to benefit directly from the tariff reduction. The company has been aggressively expanding its footprint in Europe and exploring entry into the North American market.

With tariffs now lowered from 125% to just 10% on most categories, XPeng's cost structure for potential U.S. exports and imported U.S. components likely improves considerably.

Moreover, China's suspension of non-tariff countermeasures, including sanctions and export restrictions on high-tech materials, could ease XPeng's access to advanced semiconductors and batteries, critical to its XNGP autonomous driving platform and upcoming G6 and X9 models.

The easing of geopolitical tensions could also boost investor confidence in XPeng's international strategy and alleviates risks tied to supply chain disruptions and trade barriers.

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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 $27.16 and a 52-week low of $6.60.