Arrowpoint Divests Entire XPeng Stake: 500,000 Shares Liquidated in Strategic Rebalance

Institutional investment firm Arrowpoint Investment Partners (Singapore) has fully liquidated its XPeng holding, marking a significant portfolio shift. The complete exit involved selling all 500,000 shares, translating to approximately $9 million in transaction value based on the period’s average pricing. This decision was disclosed through SEC filings dated November 13, 2025.

The Portfolio Reality Check

Prior to this transaction, XPeng represented a meaningful 8% allocation within Arrowpoint’s assets under management. Following the liquidation, the Chinese EV manufacturer no longer appears in the fund’s equity portfolio. The proceeds have evidently been redirected toward other positions, with the fund’s current largest holdings now anchored by NYSE:AEG at $15.4 million (15.4% of AUM), followed by NASDAQ:SATS and NASDAQ:VCSH.

The timing raises interesting questions about investor sentiment. XPeng shares had climbed to nearly $25 during the third quarter—representing gains exceeding 100% year-to-date—before settling to $20.50 as of late December 2025. Locking in such substantial appreciation is a textbook profit-taking move, particularly when dealing with cyclical sectors like automotive manufacturing.

XPeng’s Operational Momentum Masks Structural Challenges

On the surface, XPeng’s fundamentals appear robust. Through November, vehicle deliveries surged 156% year-over-year, a trajectory that would normally justify investor enthusiasm. The company’s export strategy has proven particularly effective, with international shipments nearly doubling and now accounting for approximately 10% of total deliveries.

However, the broader EV landscape presents complications. China’s battery-powered vehicle makers are aggressively scaling production both domestically and internationally. Global EV sales growth is decelerating. Competition has intensified substantially compared to previous years. This competitive compression may have influenced Arrowpoint’s decision to reallocate capital.

The Business Model at a Glance

XPeng generates revenue primarily through the sale of smart electric vehicles—spanning the G3 and G3i SUV lines, the P7 sports sedan, and P5 family sedan—alongside ancillary services including charging infrastructure, maintenance programs, insurance, and digital subscriptions. The company’s market capitalization stands at $19.6 billion, with trailing twelve-month revenue hitting $10.04 billion.

The manufacturer targets China’s premium and mid-market vehicle segments, emphasizing proprietary technology and integrated customer experiences. This positioning has allowed XPeng to differentiate itself in an increasingly crowded field.

Strategic Recalibration or Market Signal?

The exit doesn’t necessarily telegraph lost confidence in management or the company’s long-term potential. For a diversified fund like Arrowpoint, rotating positions at opportune moments represents sound portfolio discipline. Recognizing when valuations have become stretched relative to near-term growth prospects is a legitimate investment practice.

That said, the combination of slowing global EV demand growth, intensifying competitive pressures from Chinese and international manufacturers, and the difficulty in forecasting which players will dominate the EV transition suggests that institutional investors may increasingly favor defensive positioning or selective exposure in this sector.

XPeng continues delivering vehicles and expanding geographically. Whether the stock can sustain momentum amid this evolving competitive environment remains the central question for investors evaluating entry or exit points.