XPeng Motors announced Friday the issuance of 317,500 Class A common shares, representing 0.02 percent of its total issued shares previously, according to a Hong Kong Stock Exchange announcement.
This is an issuance of Class A common shares to satisfy restricted share units pursuant to the 2019 Equity Incentive Plan approved and adopted in June 2020 and amended and restated in August 2020, the announcement said.
XPeng began trading in Hong Kong on July 7 under the ticker symbol "9868" at an issue price of HK$165 per share.
However, there has been a general sell-off in Chinese electric vehicle stocks, especially in the past two weeks.
XPeng has fallen more than 15 percent in Hong Kong since August 4, closing Friday at HK$142.6, 13.6 percent below its IPO price.
To analysts, the short-term volatility doesn't seem to affect the company's value increase in the medium to long term.
CITIC Securities initiated coverage of XPeng in a report on Monday, giving it a Buy rating and a $55 price target for its US ADR and a HK$215 price target in Hong Kong, corresponding to 10x PS in 2022.
Tesla's annual sales five years ago were 70,000 to 100,000 units, with an average PS of 5x. Car companies, including XPeng, now face a more optimistic market environment with greater certainty than Tesla did five years ago, hence the analysts' target price.
The report forecasts XPeng sales to reach 70,000 and 140,000 units in 2021 and 2022, respectively, and to reach 600,000 units in 2025, with a 6 percent share of the new energy vehicle market.
The team says it is bullish on XPeng's rapidly rising sales as new energy passenger car sales are expected to reach 3.05 million units in 2021, while industry sales are expected to reach 9 million units in 2025, with a compound annual growth rate of about 30 percent.