Hyperdrive
Chinese EV-Maker XPeng Plunges After Alibaba Plans Stake Sale
- Alibaba to cut stake to 7.5% from 10.2% for about $391 million
- XPeng’s US shares fell as much as 8.6% after disclosure
An XPeng Inc. showroom in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
US-traded shares of XPeng Inc. slumped Friday after Alibaba Group Holding Ltd. disclosed a plan to cut its stake in the Chinese electric vehicle maker.
XPeng shares tumbled as much as 8.6% on Friday after a Securities and Exchange Commission filing showed that Taobao China Holding Ltd., an Alibaba subsidiary, intends to sell 25 million of XPeng’s American depositary receipts. The stake was worth about $391 million, based on XPeng’s closing share price on Thursday.