Xpeng Motors' U.S. stocks closed down 7.5%, and fell 8.6% during the session. The previous U.S. Securities and Exchange Commission announcement showed that its shareholder Alibaba planned to sell 25 million Xpeng ADRs. Taobao China Holdings, a subsidiary of Alibaba, will sell 25 million ADRs of Xpeng, each representing two shares of Class A common stock, with a total value of US$391 million.
The sale date is around December 15th. The announcement shows that the securities to be sold were purchased as a pre-IPO investment on September 12, 2019.
According to Sina Technology, in response to Alibaba Group’s announcement to sell part of its stake in Xpeng Motors, a relevant person in charge of Alibaba Group said, “Based on our own capital management goals, we sold part of our shares in Xpeng, reducing our shareholding from 10.2% to 7.5%. Xpeng is one of the leaders in China’s electric vehicle field, and we have established a strategic partnership with it. We believe in Xpeng’s prospects and look forward to continued cooperation with the company.”
At the quarterly results conference call on the 16th of last month, Alibaba Group management stated that in the future, it will continue to optimize capital management to increase return on capital and enhance shareholder value.
Alibaba's US stocks closed up 2.76%.