NEW YORK, December 31, 2025, 06:15 ET — Premarket
- XPeng shares fell 4.2% in premarket trading after a 3.8% gain in the prior session
- China earmarked 62.5 billion yuan for 2026 trade-in subsidies, including incentives for new-energy vehicles
- XPeng’s CEO outlined plans for a new range-extended G7 variant, with a 2026 debut targeted
XPeng Inc shares fell 4.2% to $20.38 in premarket trading on Wednesday, after ending the previous session up 3.8% at $21.28. Premarket volume was about 73,000 shares as of 5:59 a.m. ET. 1
The early drop lands as investors balance year-end positioning with fresh signals from Beijing on consumer support. For Chinese new-energy vehicles — a category that includes battery-electric cars and plug-in hybrids — policy changes can quickly reshape demand expectations.
China has earmarked 62.5 billion yuan ($8.94 billion) from special treasury bonds for a consumer goods trade-in scheme in 2026, state news agency Xinhua reported. Vehicle incentives include subsidies of up to 20,000 yuan for scrapping old cars and buying new-energy vehicles. 2
China’s President Xi Jinping said policymakers would adopt more proactive macro policies in 2026, reinforcing expectations that officials will keep leaning on consumption and investment to stabilise growth. 3
On the company front, XPeng Chairman and CEO He Xiaopeng revealed a G7 Super range-extended electric vehicle, or REEV — a battery car that carries a small gasoline engine to generate electricity when needed. He said the model offers “a combined driving range of up to 1,704 kilometers,” and is slated for a formal debut in the first quarter of 2026, according to Gasgoo. 4
Range-extended models have become a hot battleground in China as automakers try to ease range concerns without relying entirely on public charging. Li Auto has built its business around the format, while several rivals have moved to add similar options.
XPeng shares rallied in Tuesday’s regular session as traders reacted to the 2026 subsidy funding headlines, but the pullback in extended-hours trade suggests investors are still quick to take profits. Year-end liquidity can magnify moves, especially in U.S.-listed China ADRs.
The next near-term catalyst is the round of early-January delivery updates from Chinese EV makers, which often set the tone for sentiment at the start of the month. Investors will also be watching for any additional detail on how 2026 trade-in funding is distributed across vehicle types and regions.
Pricing for XPeng’s new G7 REEV variant has not been announced, leaving analysts to rely on assumptions for 2026 demand and margins. The sector has been under pressure from price competition, making any signal on pricing power a key swing factor.
Technically, Barchart data put support near $20.89 and $20.50, with resistance around $21.82 and $22.35. A sustained break below support would leave the stock retracing more of Tuesday’s advance, while a move back above $22 would refocus traders on late-December highs. 5
