XPeng (XPEV) stock rallied about 12% on Thursday on news that the Chinese electric vehicle maker’s Chairman and CEO Xiaopeng He increased his stake in the company by purchasing 3.1 million Class A ordinary shares. XPeng recently reported a narrower-than-anticipated loss for the second quarter of 2025, driven by a 125.3% jump in revenue and improved margins.
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XPeng CEO’s Stock Purchase Reflects Increased Confidence
XPeng’s CEO bought 3.1 million Class A ordinary shares between August 20 and 21 through Galaxy Dynasty, a company wholly owned by him. The transaction was made at an average price of HK$80.49 per share.
Following this latest transaction, Galaxy Dynasty holds 3.1 million Class A ordinary shares of XPEV and about 1.42 million American Depositary Shares (ADSs). Meanwhile, Mr. He holds about 327.71 million Class B shares of XPeng, 2.2 million ADSs through Simplicity Holding Limited, 21 million shares via Respect Holding Limited, 3.1 million Class A ordinary shares, about 1.42 million ADSs held by Galaxy Dynasty, and 1 million Class A ordinary shares held directly by himself. Overall, CEO He now has a stake of about 18.9% in the company.
Share purchase by a key insider signals confidence in the company’s growth potential. Despite the growing competition in the Chinese EV market, XPeng’s robust deliveries and optimism about the upcoming launches have been driving its stock higher. The company is now targeting more than 40,000 deliveries per month, starting in September, with the G7 and P7 models expected to contribute incremental volumes.
Is XPeng Stock a Good Buy?
Amid intense competition, Wall Street has a Moderate Buy consensus rating on XPeng stock based on seven Buys, two Holds, and one Sell recommendation. The average XPEV stock price target of $24.58 indicates 8% upside potential from current levels. XPEV stock has rallied about 93% year-to-date.
