Alibaba’s Taobao China plans to sell 25 million shares of Xpeng’s American Depositary Shares (ADSs), worth about $391 million, following this news a 7.54 percent drop in Xpeng’s stock brought their market capitalization to $13.6 billion. Alibaba’s management stated in its third-quarter earnings call that the company would optimize its capital management to improve return on capital and enhance shareholder value. Xpeng emphasized that Alibaba’s move was in execution of its investment liquidity strategy and not due to a change in its view of Xpeng.
Alibaba will remain Xpeng’s second-largest shareholder with a stake of about 8% and will continue its strategic cooperation with Xpeng in areas such as cloud computing. Xpeng has more than RMB 40 billion in cash on hand and billions of RMB in positive free cash flow in the second half of the year. Xpeng Motors released its latest delivery data on December 1st. The company reported a year-on-year increase in deliveries of 245% in November, delivering a total of 20,041 new cars.
DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.
+ There are no comments
Add yours