Senator Calls For Ban On Chinese EVs: What's Going On With XPeng Stock?

Zinger Key Points
  • Senator Brown sent a letter on Thursday to President Biden, urging him to ban the sale of Chinese EVs in the U.S.
  • Treasury Secretary Janet Yellen recently met with Chinese officials to discuss trade practices, including government subsidies.

XPeng, Inc. XPEV shares are trading lower Friday after Ohio Senator Sherrod Brown called for a permanent ban on imports of China-made EVs into the United States.

The Details:

Senator Brown sent a letter on Thursday to President Biden, urging him to ban the sale of Chinese EVs in the U.S. and to " work with our allies to address these concerns in a wholistic manner that supports American jobs and innovation."

"Chinese electric vehicles (EVs) threaten our economic and national security, and the entire American auto industry," Senator Brown stated in the letter. 

The Senator's letter comes on the heels of Treasury Secretary Janet Yellen's meetings with Chinese government officials to discuss the country's trade practices, including government subsidies which support companies in the clean energy industry. 

According to data from Benzinga Pro, XPeng shares are trading below the stock’s 50-day moving average of $8.80 and are approaching its 52-week low of $7.18. 

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XPEV Stock Prediction 2024:

XPeng’s revenue growth in fiscal year 2023 was 7.57%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.2%, growing 2.1% from last year. The unemployment rate was most recently reported as 3.8%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for XPeng stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against XPeng's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. XPeng operates in the Consumer Discretionary sector. The stock has experienced average annual growth of -40.18% compared to the -33.7% average of its peer companies. This is below the broader sector movement of XPeng.

XPEV Price Action: According to Benzinga Pro, XPeng shares are down 8.16% at $7.59 at the time of publication Friday. 

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