Chinese EV Maker XPeng Expects Corruption Probe Not To Affect Its Business: Report
Portfolio Pulse from Shivani Kumaresan
Chinese EV maker XPeng Inc (XPEV) is under investigation for corruption involving its head of procurement, Li Feng. Despite this, XPeng expects the probe not to disrupt its business or production processes. The news comes as XPeng is fostering strategic alliances, including a $700 million investment from Volkswagen AG (VWAGY) for EV development in China. XPeng's shares are trading higher by 1.77% in premarket.
October 11, 2023 | 1:16 pm
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Volkswagen has invested $700 million in XPeng for EV development in China.
Volkswagen's investment in XPeng signifies its strategic move to expand its presence in the EV market in China. However, the ongoing corruption investigation involving XPeng could potentially impact Volkswagen's stake in the company.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
XPeng is under a corruption probe but expects no disruption to its business. Its shares are trading higher.
Despite the ongoing corruption investigation, XPeng's business operations are expected to remain unaffected. This is reflected in the premarket trading where its shares are up by 1.77%. However, the outcome of the investigation could potentially impact the company's reputation and stock price in the future.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100