XPEV - Why Shares of 1 Chinese EV Maker Jumped Today
2023-03-17 13:17:13 ET
The stock of Chinese electric vehicle maker XPeng (NYSE: XPEV) jumped as much as 14% Friday morning even with shares of its better-known competitor, Nio , in negative territory. The irony is that it was XPeng's earnings report that likely caused Nio to drop nearly 3%. But XPeng stock held onto a gain of 8.6% as of 12:45 p.m. ET.
XPeng reported disappointing fourth-quarter 2022 earnings and revenue results and provided equally disappointing forward guidance. But its shares jumped anyway.
Two things help explain investors' reaction. First, XPeng shares have already dropped more than 60% over the past 12 months. Perhaps more importantly, though, management said the company has a plan to restructure and cut costs.
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Why Shares of 1 Chinese EV Maker Jumped Today