Tesla Rival Xpeng Sees No Immediate Threat Of Getting Delisted From US, Says Prepared For Any Eventuality

U.S. listed Chinese electric vehicle maker Xpeng Inc’s (NYSE: XPEV) President Brian Gu said the company is prepared for all eventualities if it is forced to de-list from American exchanges, a threat that is at least "several years away," Bloomberg News reported on Wednesday.

What Happened: The Xpeng executive said the company is closely tracking the ongoing de-listing fallout with China ADRs as well as the accounting issue.

Xpeng — which is listed in both the U.S. and Hong Kong — expects the Chinese government to continue supporting the global EV expansion. The executive said it took decades for auto companies who made an effort to make a mark on the U.S. exchanges.

Earlier this month, Xpeng reported monthly delivery numbers that came ahead than those of local rivals Nio Inc (NYSE: NIO) and Li Auto Inc (NASDAQ: LI).

See Also: DiDi's Plans To Delist From NYSE Send Alibaba, Other Major Chinese Tech Names Sinking In Hong Kong

Growing Regulatory Scrutiny: Gu’s comments follow the recent volatile period for U.S. listed Chinese tech firms. Didi Global Inc (NYSE: DIDI) earlier this week said it would delist the company’s shares from the New York Stock Exchange. 

China’s Cyberspace Administration in July ordered mobile app stores to remove 25 apps operated by DiDi shortly after the company conducted its U.S. IPO. The Chinese regulator also prohibited the company from onboarding new users. 

Didi is reportedly finalize regulatory penalties by December and relaunching its ride-hailing and other apps in China by 2021.

Last year, Ant Group’s—the fintech subsidiary of Chinese tech giant Alibaba Group Inc (NYSE: BABA)— blockbuster IPO was shelved after China’s regulators stepped in at the last moment.

Popular investor Cathie Wood’s Ark Invest bought shares in Xpeng last week, its first buy in an all-electric vehicle company after Tesla Inc (NASDAQ: TSLA). 

Price Action: Xpeng shares closed 2.42% higher at $47.40 a share.

Photo: Courtesy of Xpeng