Shares of recently IPO’d XPeng (NYSE: XPEV) tumbled 27.1% in December as the strong rally in Chinese electric-vehicle manufacturers lost steam at the end of the year.
Both NIO and Li Auto also declined after fabulous run-ups across the year. XPeng, which went public in August, had been carried higher by the enthusiasm exhibited for the category, but year-end cautiousness caused investors to pull back.
President Trump, for instance, signed a bill that could cause foreign companies not adhering to the same accounting standards U.S. companies follow to be delisted from U.S. stock exchanges. XPeng had previously identified material weaknesses in its accounting controls because its staff had insufficient understanding of U.S. accounting principles. Li Auto said something similar.