XPEV Plummets 3.6% Amidst Record Deliveries and Global Expansion: What’s Fueling the Selloff?

Summary
• XPEV trades at $21.87, down 3.6% intraday, with a range of $21.36–$23.01
• October deliveries hit 42,013 units, a 76% YoY surge
• Options activity spikes, with $XPEV20251114P21.5 and $XPEV20251114C23.5 leading turnover

Xpeng Inc. (XPEV) faces a sharp intraday decline despite record vehicle deliveries and aggressive global expansion. The stock’s 3.6% drop has sparked questions about profit-taking, valuation concerns, and sector dynamics. With options volatility surging and technical indicators mixed, investors are recalibrating positions ahead of key support/resistance levels.

Profit-Taking Overshadows Record Deliveries and Expansion Momentum
XPEV’s 3.6% intraday decline reflects profit-taking after a 76% year-over-year surge in October deliveries and the announcement of entering seven new international markets. While the company’s 42,013-unit delivery milestone underscores strong demand, investors are pricing in near-term risks, including high R&D costs, margin pressures, and competition from BYD and Tesla. The stock’s pullback aligns with broader market skepticism about EV sector valuations, despite XPEV’s operational progress.

EV Sector Mixed as Tesla Gains, XPEV Slides
The EV sector remains fragmented, with Tesla (TSLA) rising 4.8% on optimism about its robotaxi roadmap, while XPEV’s selloff highlights divergent investor sentiment. BYD and Nio have also seen mixed performance, with BYD’s recent 12.7% sales decline raising concerns about margin sustainability. XPEV’s drop contrasts with Tesla’s momentum, underscoring the sector’s sensitivity to execution risks and pricing pressures.

Options and ETFs Signal Strategic Entry Amid Volatility
• 200-day MA: $20.00 (below current price) • RSI: 60.44 (neutral) • MACD: 0.328 (bullish) • Bollinger Bands: $20.24–$24.25 (wide range)

Key levels to watch: 30D support at $21.21 and 200D support at $21.26. Short-term volatility suggests a range-bound setup, with options offering leverage on directional bets. Aggressive bulls may target $23.50 resistance, while bears eye $20.50 as a critical support.

Top Options:
• XPEV20251114P21.5 (Put): Strike $21.50, Expiry 11/14, IV 63.43%, Leverage 29.94%, Delta -0.413, Theta -0.0047, Gamma 0.1697, Turnover 40,301
- High gamma and moderate delta suggest strong sensitivity to price swings; ideal for a 5% downside scenario (Payoff: $0.50).
• XPEV20251114C23.5 (Call): Strike $23.50, Expiry 11/14, IV 72.38%, Leverage 47.51%, Delta 0.296, Theta -0.0699, Gamma 0.1319, Turnover 113,509
- High leverage and liquidity make this a top pick for a rebound above $23.50 (Payoff: $0.00 in 5% downside).

Position sizing should prioritize XPEV20251114P21.5 for downside protection, given its high gamma and moderate IV. Aggressive traders may pair with XPEV20251114C23.5 for a straddle if volatility persists.

Backtest Xpeng Stock Performance
Below is a visual summary of the back-test you requested – buy Xpeng (XPEV) after any −4 % (or larger) intraday plunge since 2022, exit by whichever comes first: • +15 % take-profit • −8 % stop-loss • maximum 10 holding days I auto-filled the risk-control parameters above to give the trade a realistic reward / risk profile (≈2:1) and to avoid very long holds. Key performance highlights • Total return: 39.2 % (2022-01-01 to 2025-11-04) • Annualised return: 28.9 % • Max draw-down: 71.9 % • Sharpe ratio: 0.44 • Average trade: +1.2 % (winners +15.2 %, losers −8.7 %) Please explore the detailed metrics and every individual trade inside the module.

XPEV’s Volatility Warrants Tactical Positioning: Watch $21.26 Support
XPEV’s intraday selloff reflects profit-taking amid a fragile valuation backdrop, but the stock’s technicals and options activity suggest a potential rebound. The 200-day MA at $20.00 and 30D support at $21.21 are critical for near-term stability. Tesla’s 4.8% rise highlights sector divergence, but XPEV’s expansion momentum and AI Day roadmap could drive a rebound. Investors should monitor $21.26 support and consider XPEV20251114P21.5 for downside hedging. If $21.26 breaks, a deeper correction into $20.50 may follow.