Xpeng’s 11.68% Rally and $0.74 Billion Surge Rank 91st in Market Activity as CEO Buys 3.1M Shares Amid Steering System Controversy

On August 21, 2025, Xpeng (XPEV) surged 11.68% with a trading volume of $0.74 billion, a 503.99% increase from the prior day, ranking 91st in market activity. The rally coincided with CEO He Xiaopeng’s purchase of 3.1 million shares at HK$80.49, signaling strong conviction in the company’s long-term prospects. However, the stock’s volatility was compounded by a recall controversy surrounding its P7+ steering system, which raised regulatory and reputational concerns despite the CEO’s bullish stance.

The stock’s intraday high of $22.955 brought it closer to its 52-week peak of $27.16, though analysts remain divided. While the CEO’s buy-in reinforced investor confidence, the steering system issue—allegedly resolved without a formal recall—introduced uncertainty. This duality drove mixed sentiment, with some viewing the CEO’s move as a strategic signal and others cautioning against potential trust erosion. The Hang Seng Index’s 25.15% year-to-date gain outpaced XPEV’s 92.80% return, reflecting broader market optimism but underscoring the EV sector’s fragmented performance.

Technical indicators highlighted short-term momentum. The MACD (0.454) and RSI (64.5) suggested bullish divergence, while Bollinger Bands showed the price near the upper boundary. Key resistance levels at $22.955 and $21.41 became focal points for traders assessing the stock’s directional bias. High-gamma options like XPEV20250829C22.5 and XPEV20250905C21.5 were positioned to capitalize on volatility, though rapid time decay and liquidity risks remained critical factors.

A backtest of XPEV’s performance after a 13% intraday surge revealed positive short-to-medium-term trends. The 3-Day win rate stood at 48.78%, with 10-Day and 30-Day win rates at 49.13% and 51.22% respectively. The maximum 30-Day return reached 9.06%, suggesting the stock’s potential to sustain gains following strong momentum days. These results align with the current rally, though caution is advised given the sector’s inherent volatility and regulatory challenges.