XPEV - Why XPeng's Stock Plummeted 80% in 2022
Driving nearly 18% higher in 2021, shares of XPeng (NYSE: XPEV) failed to maintain the same momentum in 2022. It didn't take long once the new year began for investors to pump the brakes, then shift into reverse -- and continue backing up for the remainder of the year.
With analysts turning bearish on the stock and lockdowns in China suggesting that there would be reduced demand for XPeng's electric vehicles (EVs), investors continue exiting their positions in 2022. According to data provided by S&P Global Market Intelligence , XPeng's stock plunged 80.3% in 2022.
For several years now, growth investors have hitched rides with EV stocks, recognizing the rapidly rising demand for EVs as a signal that the companies producing the vehicles are bound to prosper. There's a catch, however. When circumstances begin to hinder the potential for these companies to grow, investors take note -- and that's exactly what played out last year for XPeng.
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Why XPeng's Stock Plummeted 80% in 2022