Electric vehicle stocks like XPeng (NYSE:XPEV) have long suffered under the notion of autonomous driving. Tesla (NASDAQ:TSLA) has been trying to get that right for years, with mixed results. Now, XPeng finds itself under the gun as it loses a major figure connected to its own efforts to make cars drive themselves. The loss cost XPeng substantially, as it was down over 4.3% at one point in Wednesday afternoon’s trading.
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XPeng announced that Dr. Xinzhou Wu–its now-former Vice President of Autonomous Driving–resigned from his position. The resignation cited “personal and family” reasons, though just what those reasons were was never described. Stepping in for Dr. Wu will be Dr. Liyun Li, who was the Senior Director of the autonomous driving unit. Li served as a leader in the project team, so there out to be little, if any, disruption thanks to the substitution.
The news comes at a terrible time for XPeng, however; it was already suffering from a significant loss after its deliveries report proved disappointing to investors, sending share prices down over 15% in the last week alone. With ongoing troubles in the electric vehicle front—particularly a price war started up by Tesla not so long ago—as well as consumer issues like rising interest rates continuing to sock consumer confidence in the teeth, XPeng doesn’t need troubles from top brass abandoning the field.
Analysts, meanwhile, are split on XPeng’s overall position. With six Buy ratings, five Hold and three Sell, XPeng is currently considered a Hold by analyst consensus. Further, with an average price target of $14.56, XPeng stock comes with a 23.85% downside risk.
