Why is Xpeng stock crashing?

Core Viewpoint - Xpeng Inc's stock price has dropped significantly amid a broader selloff in the Chinese market, despite a recent rally and positive company performance indicators [1][3][5]. Market Context - Xpeng's share price fell by 7.08% during premarket trading on October 14, following a broader market correction in China after disappointing stimulus measures [1][3]. - The CSI 300 index experienced its worst day since 1997, following a period of rapid growth driven by initial stimulus measures [1][3]. Company Performance - Over the last six months, Xpeng's stock has increased by 65.69%, recovering much of its year-to-date losses, which currently stand at 15.03% [1]. - The company recently opened presales for its P7+ model, which is priced $10,000 lower than Tesla's Model 3, potentially serving as a strong bullish catalyst [5]. - Xpeng's vehicle deliveries rose by 30.2% year-over-year, and revenues increased by 60.2% compared to the previous year [6]. - In Q3 2024, Xpeng achieved a record delivery of 21,352 units in a single month, indicating strong operational performance [8]. Investor Sentiment - Major institutions, such as JPMorgan Chase, have increased their stakes in Xpeng, reflecting confidence in the company's future prospects [5]. - Conversely, Alibaba reduced its stake from 10.2% to 7.5%, which was characterized as a profit-taking move rather than a negative outlook on the company [5].