Why XPeng Inc. (XPEV) Went Down On Wednesday?

We recently published a list of Today’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where XPeng Inc. (NYSE:XPEV) stands against other worst-performing stocks.

Wall Street’s main indices finished mixed on Wednesday, with the Dow Jones emerging as the sole decliner as investors digested more news of tariff threats from President Donald Trump.

The Dow Jones dropped by 0.20 percent. In contrast, the S&P 500 and Nasdaq clocked in gains of 0.49 percent and 1.22 percent, respectively.

Ten companies mirrored a mostly pessimistic trading—four of which were Chinese stocks—as traders sold off to minimize risks from the potential impact of the US’ trade war with China.

In this article, we have identified the 10 worst performers on Wednesday and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

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XPeng Inc. (NYSE:XPEV)

Shares of XPeng Inc. declined by 6.11 percent on Wednesday to end at $24.73 each, as investors disposed of positions in Chinese firms amid the ongoing trade war between the United States and China and other trading partners.

Additionally, investors repositioned their portfolios ahead of the company’s earnings release on Tuesday next week, where among the cues to look out for include its 2025 outlook guidance and whether its plan to double down on expansion into international markets would push through as intended, taking into account the economic uncertainties globally.

“This year, we will increase to 60 and will have established more than 300 after-sales service points worldwide,” XPEV CEO He Xiaopeng said earlier.

Over the next 10 years, he said that the international markets are expected to power its sales.

Analysts are generally bullish on their outlook for the company. Citi, for its part, gave the company a “buy” rating, a revision from “neutral” previously, while giving it a price target of $29, up from $13.70 previously.

Overall, XPEV ranks 5th on our list of worst-performing stocks. While we acknowledge the potential of XPEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XPEV but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.