Xpeng Motors raced to a gain of 381% in its first three months of trading following its debut on the NYSE, as investors clamored to place their bets on the Guangzhou-based electric vehicle maker, but now that rally is losing some of its charge.
Most Chinese EV makers surrendered a portion of this year’s gains after short seller Hindenburg Research accused fellow EV company Kandi Technologies of falsifying revenues. Adding even further to the market jitters was a recent report of government probes into fellow EV makers Evergrande New Energy Vehicle and Shenzhen Baoneng.
Shi Ji, a Hong Kong-based research director at Haitong International, says the stocks are likely entering a correction phase. “The recent run-up in share prices isn’t entirely driven by fundamentals,” he says. “Investors are betting that electric vehicles will become mainstream. That is a