Why XPeng Stock fell 29.2% in February

What happened

Actions of XPeng (NYSE: XPEV) fell 29.2% in February, according to data from S&P Global Market Intelligence. China’s electric vehicle (EV) stock sold amid a broader setback for EV companies.

XPEV data by YCharts

A sharp rise in Treasury bill yields started in February, and investors began to shift away from technology stocks in favor of fixed income, energy and industrials stocks. EV stocks were particularly hard hit and XPeng was caught in the pullback.

Image source: XPeng.

So what

XPeng stock is still up around 32% from last year, but the company’s stock price is also trading around 62% from its peak last November. The company is expanding its electric vehicle deliveries at a rapid rate and it looks like it will continue to enjoy strong growth despite currently shipping fewer vehicles than its competitors. NIO and Li Auto. However, XPeng could be caught in a larger correction for EV stocks.

Now what

XPeng stock continued to slide at the start of March trading. The company’s share price has fallen by around 21% in the month so far.

XPEV data by YCharts

XPeng released its February vehicle delivery figures on March 1, saying it delivered 2,223 vehicles in February. Combined vehicle deliveries in January and February increased 577%, and the company has now delivered 20,181 of its P7 midsize sedans.

The company has established itself as an early force in the EV space in China, and it has a large addressable market in which to grow, but investors should likely expect high volatility in the near term. XPeng has a market cap of around $ 20 billion and is trading at around 27 times its sales. The company is expected to release its fourth quarter results on March 8.