Major Fund Liquidates XPeng Stake: What Changed in the EV Market?

Singapore-based Arrowpoint Investment Partners just made a significant move—completely offloading its entire 500,000 share position in XPeng Inc. (NYSE:XPEV), valued at approximately $9 million. The latest SEC filing from November 13, 2025 reveals what was previously an 8% allocation of the fund’s assets under management has now dropped to zero. This isn’t just routine portfolio rebalancing; it signals shifting sentiment in the competitive EV landscape.

Why This Exit Matters Now

The timing is intriguing. XPeng stock has been on fire lately, trading at $20.50 as of late December 2025 and delivering a 62% year-to-date return—substantially outpacing the broader market. The company itself has demonstrated impressive operational momentum, with vehicle deliveries surging 156% year-over-year through November. Export initiatives have been crucial to this growth, with overseas sales nearly doubling and now representing about 10% of total deliveries.

Yet despite these bullish metrics, Arrowpoint chose to exit. The move likely reflects profit-taking at opportune levels—XPeng peaked near $25 per share in Q3, representing over 100% gains from the year’s start. Locking in gains during periods of market euphoria remains a textbook strategy, even for seasoned institutional investors.

The Bigger Picture: Intensifying Competition

However, there’s more beneath the surface. The EV sector’s competitive dynamics have fundamentally shifted. China-based manufacturers have dramatically increased production and export capacity both domestically and internationally. This heightened competition, coupled with moderating global EV sales growth, creates an increasingly challenging environment for single-stock picking.

Arrowpoint’s portfolio is deliberately diversified, with top holdings including AEG ($15.4 million representing 15.4% of AUM), SATS ($3.8 million at 3.8%), and VCSH and ALAB (each holding 3.4%). The fund’s departure from XPeng appears to be strategic reallocation rather than loss of confidence in the company itself.

XPeng’s Market Position

XPeng maintains a robust market presence, commanding a $19.6 billion market capitalization with trailing twelve-month revenue of $10.04 billion. The company differentiates through proprietary in-house technology, an integrated service ecosystem spanning maintenance, super-charging, and digital subscriptions, and a targeted focus on China’s premium and mid-market automotive segments. The strategy centers on high-performance vehicles paired with seamless customer experience.

The EV maker’s vehicle lineup—including the G3 and G3i SUVs, P7 sports sedan, and P5 family sedan—positions it competitively as consumers increasingly demand technologically advanced and environmentally responsible transportation solutions.

The Strategic Takeaway

Arrowpoint’s complete exit underscores a critical market reality: strong fundamentals and impressive growth don’t guarantee future outperformance when industry headwinds intensify. As competition in EV manufacturing reaches unprecedented levels and global demand growth moderates, identifying genuine winners becomes substantially more difficult. Portfolio diversification and tactical exits at peak valuations remain prudent risk management approaches.