Xpeng (XPEV) Plummets 3.6% Amid Record Deliveries and Robotaxi Hype: What’s Brewing in the EV Sector?

Summary
• Xpeng (XPEV) crashes 3.6% to $21.88, its lowest since October 2024
• October deliveries surge 76% YoY to 42,013 units, entering seven new international markets
• Alibaba partnership targets 2026 robotaxi launch, but Q3 earnings on Nov 17 loom as profit concerns persist

XPeng’s stock faces a sharp intraday drop despite record EV deliveries and aggressive global expansion. The plunge follows a 76% year-over-year surge in October sales and a high-stakes partnership with Alibaba to launch robotaxis by 2026. With the stock trading below its 52-week high of $27.16 and a dynamic PE of -65.29, investors are weighing growth momentum against unresolved profitability challenges. The $21.355 intraday low highlights volatility as the market digests mixed signals from the EV sector.

Robotaxi Ambitions and Profitability Concerns Drive XPEV’s Sharp Decline
Xpeng’s 3.6% drop reflects investor skepticism about its path to profitability despite record deliveries. The company’s partnership with Alibaba for a 2026 robotaxi service—a strategic pivot to autonomous mobility—has not yet translated into improved margins. October’s 42,013 deliveries (up 76% YoY) underscore demand for its Mona M03 sedan but fail to offset persistent net losses. With Q3 earnings due Nov 17, the market is pricing in concerns over R&D and marketing costs outpacing revenue growth. Short-term volatility is amplified by a dynamic PE of -65.29 and a 52-week low of $11.14, signaling a tug-of-war between growth optimism and financial caution.

EV Sector Volatility Intensifies as XPEV Trails Tesla’s 4.29% Rally
While Xpeng tumbles, Tesla (TSLA) surges 4.29% on Q2 earnings optimism, highlighting divergent investor sentiment in the EV sector. BYD and NIO also face mixed reactions, with BYD’s 12.7% October sales decline contrasting against Xpeng’s growth. The sector’s fragmentation—driven by price wars and margin pressures—leaves Xpeng’s robotaxi ambitions in a precarious position. Despite entering seven new markets in October, Xpeng’s stock underperforms peers as profitability remains the unmet threshold for sector leadership.

Options Playbook: Capitalizing on XPEV’s Volatility with Strategic Contracts
• MACD: 0.328 (bullish), Signal Line: 0.212, Histogram: 0.116 (positive divergence)
• RSI: 60.44 (neutral), Bollinger Bands: 24.25 (upper), 22.24 (middle), 20.24 (lower)
• 200D MA: $20.00 (below current price), 30D MA: $22.52 (resistance)

XPEV’s technicals suggest a short-term bounce from the 20.24 Bollinger Band support but a bearish bias if the 200D MA at $20.00 breaks. The 60.44 RSI indicates equilibrium, but the MACD’s positive divergence hints at potential short-term strength. For options, focus on near-term puts to hedge downside risk or capitalize on volatility.

Top Option 1: XPEV20251114P21.5 (Put)
• Strike: $21.50, Expiration: 2025-11-14, IV: 63.43%, Leverage: 29.94%, Delta: -0.413, Theta: -0.0047, Gamma: 0.1697, Turnover: 40,301
• IV (high volatility), Leverage (moderate), Delta (mid-range sensitivity), Gamma (strong price sensitivity), Turnover (high liquidity)
• This put offers a 19.67% price change potential if XPEV dips below $21.50, with high gamma ensuring responsiveness to price swings. A 5% downside to $20.80 would yield a payoff of $0.70 per contract.

Top Option 2: XPEV20251121P21 (Put)
• Strike: $21.00, Expiration: 2025-11-21, IV: 69.98%, Leverage: 24.56%, Delta: -0.362, Theta: -0.0152, Gamma: 0.1136, Turnover: 15,236
• IV (high volatility), Leverage (moderate), Delta (mid-range sensitivity), Theta (moderate time decay), Gamma (reasonable sensitivity), Turnover (solid liquidity)
• This put benefits from elevated IV and a 37.31% price change potential if XPEV tests $21.00. A 5% downside to $20.80 would yield a $1.00 payoff, making it a high-reward short-term play.

Action Hook: Aggressive bears should prioritize XPEV20251114P21.5 for a 14-day window to capitalize on a potential breakdown below $21.50. For a longer-term play, XPEV20251121P21 offers flexibility ahead of the Nov 17 earnings report.

Backtest Xpeng Stock Performance
Below is an interactive report that summarizes the back-test you requested. I have pre-filled the key details, including:• Strategy logic – buy XPEV at the close of any day whose intraday low ≤ previous close × 0.96 (a ≥ 4 % plunge). • Risk controls – automatically exit on: 8 % stop-loss, 10 % take-profit, or after 20 calendar days (whichever comes first). (Because you did not specify an exit rule, these widely-used default values were applied to keep draw-downs in check; you can let me know if you’d like different settings.) • Test window – 2022-01-01 through 2025-11-05. • Results – the visual output is linked and will load in the module.You can explore performance, equity curve, trade list, and risk metrics directly inside the widget.Feel free to drill down into the module; let me know if you’d like to tweak any parameters, compare with other exit rules, or run the same idea on additional tickers.

XPEV at a Crossroads: Watch Earnings and $20.5 Support for Clarity
Xpeng’s 3.6% decline underscores the sector’s volatility as growth optimism clashes with profitability concerns. The stock’s near-term fate hinges on its ability to hold the $20.50 support level (30D support) and the Nov 17 earnings report. A breakdown below $20.50 could trigger a test of the 200D MA at $20.00, while a rebound above $22.24 (middle Bollinger Band) may reignite bullish momentum. Investors should monitor Tesla’s 4.29% rally as a sector barometer and Xpeng’s robotaxi progress. Act Now: Position for a directional move with the recommended puts or watch for a $20.50 support test to decide between bearish or bullish bias.