XPeng Faces Twin Pressures as Shareholder Vote Looms and Subsidies Fall Flat

The clock is ticking in two directions for XPeng. The electric-vehicle maker’s stock is hovering just a hair above its 52-week low, while shareholders prepare to vote on a capital mandate that could dilute their holdings by as much as a fifth. Both narratives converged this week, and neither has given the market reason to cheer.

XPeng’s American Depositary Shares closed at 11.70 EUR, a mere 0.52 percent above the 52-week trough of 11.64 EUR struck on 17 June. That session also saw a fresh intraday low of 11.32 EUR on the German market, tracking the same slide. Since the start of the year, the stock has shed roughly a third of its value, and from the November peak of 24.40 EUR it is more than halved.

Berlin’s subsidy signal fails to move the needle

On the surface, XPeng should have been given a lift by Germany’s revised EV subsidy programme. The Federal Ministry for the Environment has explicitly named XPeng – alongside BYD and MG – as eligible for grants of up to 6,000 EUR per vehicle under a scheme that opened on 19 May 2026. The programme, backed by 3 billion EUR, is expected to support around 800,000 vehicles through 2029.

Yet the market’s reaction has been tepid. Initial data from more than 50,000 applications show that Chinese brands account for less than 15 percent of the total, prompting Berlin to dismiss any suggestion that the incentives are being dominated by Chinese manufacturers. XPeng has sought to sweeten the deal by offering additional customer bonuses of 2,500 EUR on the G6 and P7+ models and 5,000 EUR on the G9 and X9 – all combinable with the state subsidy. So far, however, that has not been enough to arrest the stock’s decline.

Shareholder meeting looms with two critical mandates

The real event for investors is 26 June, when XPeng holds its annual general meeting at 10:00 HKT in the XPENG Tech Park in Guangzhou. ADS holders, who had until 17 June to submit voting instructions via Citibank, will not be allowed to attend in person unless they converted their papers into Class A shares in time.

Should investors sell immediately? Or is it worth buying XPeng?

The agenda includes the re-election of three independent directors, the re-appointment of PricewaterhouseCoopers as auditor for the 2026 fiscal year, and approval of the 2025 annual report. But two capital-related proposals are drawing the most scrutiny. The first would authorise the board to issue new Class A shares up to a limit of 20 percent of the outstanding float. The second would permit a buyback of up to 10 percent. Both are enabling resolutions rather than immediate transactions, but at a share price near its floor the prospect of even potential dilution is a sensitive topic.

First-quarter numbers reveal pressure beneath the surface

XPeng’s operational performance does little to justify a valuation bounce. First‑quarter revenue slipped 17.6 percent year on year to 13.03 billion renminbi, with vehicle revenue dropping 23.5 percent to 11.00 billion renminbi, mainly on lower deliveries. Gross margin improved to 20.6 percent from 15.6 percent a year earlier, but that was down from 21.3 percent in the preceding quarter. The net loss widened sharply to 1.78 billion renminbi from 0.66 billion, as the company ramped up spending on new models and artificial-intelligence technologies.

There was a small bright spot in May, when deliveries reached 32,158 vehicles, a 4 percent increase from April. That sequential improvement, however, has yet to translate into any sustained upward move in the share price.

Technical indicators flash oversold but no catalyst visible

Both relative strength indices – 27 on one measure, 29 on another – put XPeng in deeply oversold territory. The 200-day moving average sits at 16.81 EUR, more than 30 percent above the current level, highlighting how far the stock has fallen. The two moving averages commonly tracked are both well above the price.

For the stock to reclaim investor attention, the next catalyst will likely have to come from concrete European delivery data in the second quarter. The combination of XPeng’s own incentive programme and the German grant may eventually move the needle, but the market is waiting for hard numbers. Meanwhile, the outcome of the 26 June vote will show how comfortable remaining shareholders are with granting the board flexibility to issue new equity when the stock is trading at effectively the cheapest it has been in a year.