Institutional Investor Liquidates Entire XPeng Stake: What the $9 Million Exit Signals

The Selloff Details

Arrowpoint Investment Partners (Singapore) has completely exited its XPeng Inc. (NYSE:XPEV) position, divesting 500,000 shares worth approximately $8.94 million. According to SEC filings dated November 13, 2025, this liquidation represents a full portfolio exit—no shares remain in the fund’s holdings post-trade.

Prior to the divestment, XPeng accounted for roughly 8% of Arrowpoint’s assets under management (AUM). Following the transaction, the stake now represents 0% of the fund’s portfolio, signaling a complete reallocation of capital away from the Chinese EV manufacturer.

Timing Suggests Profit-Taking Strategy

The exit comes at a strategically opportune moment. XPeng stock climbed to nearly $25 per share during Q3 2025, representing more than a 100% year-to-date gain at that peak. Current valuations stand at $20.5 as of December 29, 2025, reflecting a 62% annual advance that has outperformed the broader S&P 500.

For an institutional investor managing a diversified portfolio, locking in substantial gains during a high-valuation period represents standard portfolio optimization—not necessarily a vote of no confidence in the underlying company.

XPeng’s Bullish Fundamentals Amid Competitive Pressures

XPeng has delivered impressive operational metrics through November 2025, with vehicle deliveries surging 156% year-over-year. The company’s international expansion strategy has been particularly robust, with exported EVs reaching approximately 10% of total deliveries—nearly double the prior year’s export volumes.

The company manufactures a comprehensive lineup of smart electric vehicles, including SUVs (G3, G3i models), sports sedans (P7), and family sedans (P5), supported by an integrated ecosystem encompassing charging infrastructure, maintenance, leasing, insurance, and digital subscription services.

Current Market Position:

• Market Capitalization: $19.6 billion
• TTM Revenue: $10.04 billion
• Stock Price: $20.5 (as of December 29, 2025)

The Broader EV Landscape Challenge

While XPeng has demonstrated strong execution, the competitive environment has intensified considerably. China-based EV manufacturers have collectively ramped up production and export capacity both domestically and internationally. Global EV sales growth momentum has also begun to moderate, making it increasingly difficult for investors to identify which manufacturers will emerge as long-term winners in this crowded market.

This shifting dynamic may have influenced Arrowpoint’s decision to reduce exposure at current valuations, despite XPeng’s solid fundamentals and delivery trajectory.

Portfolio Repositioning

Following the XPeng exit, Arrowpoint’s top equity holdings include:

• NYSE:AEG: $15.4 million (15.4% of AUM)
• NASDAQ:SATS: $3.77 million (3.8% of AUM)
• NASDAQ:VCSH: $3.41 million (3.4% of AUM)
• NASDAQ:ALAB: $3.40 million (3.4% of AUM)
• NASDAQ:ATAT: $2.73 million (2.7% of AUM)

The reallocation underscores a strategic shift toward other market opportunities while maintaining a fundamentals-driven investment approach across the portfolio.