Xpeng's Hong Kong stocks rose 7%, and its US stocks surged as much as 8.7% during regular trading hours. The reason is that Xpeng's CEO, He Xiaopeng, has previously purchased 1 million H-shares at an average price of HKD 27.13 per share and 1.42 million American Depositary Receipts (ADRs) at an average price of USD 7.02 per share, and he plans to continue increasing his shareholding.
On Monday, Xpeng's Hong Kong stocks rose 7% to HKD 29.05, and its US stocks also rose over 7% to USD 7.51. The reason is that the company's CEO, He Xiaopeng, increased his shareholding by more than 2 million shares of Xpeng's stock.
Specifically, between August 21 and 23, he purchased 1 million H-shares at an average price of approximately HKD 27.13 per share, and 1.42 million ADRs at an average price of approximately USD 7.02 per share.
Xpeng's board of directors stated that He Xiaopeng's shareholding increase demonstrates his strong confidence in the company's future development, and he plans to continue increasing his shareholding.
Analyst Joel Ying from Nomura Securities believes that He Xiaopeng's shareholding increase may indicate his confidence in the upcoming launch of two models, the all-electric Mona M03 and the P7+ sedan. If these two models perform well in sales, they could become important drivers of shipments in the second half of 2024.
Xpeng will release pricing information for the Mona M03 on Tuesday, while the P7+ is planned to be launched in the fourth quarter. This car features a pure vision advanced driving assistance system similar to Tesla's fully autonomous driving system.
Since its establishment in 2014, Xpeng has become one of China's leading electric vehicle manufacturers, but the company has yet to achieve profitability. Analysts will closely monitor the performance of the new models to determine if the company is likely to become profitable.
In terms of financial reports, Xpeng maintained a double-digit gross margin in the second quarter, making it one of the few Chinese automakers to achieve this. The company attributes this to effective cost control and its strategic cooperation with Volkswagen. Additionally, Xpeng's net loss for this quarter has decreased by more than half compared to the same period last year, mainly due to increased automotive sales revenue and cooperation with Volkswagen.
In addition, He Xiaopeng and Yu Chengdong interacted, and Xiaopeng thanked Yu Chengdong for his blessings and affirmation of Xiaopeng's 10th anniversary.
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