Why Did Arrowpoint Liquidate Its 500,000 Share Stake in XPeng?

The Numbers Behind the Exit

On November 13, 2025, Arrowpoint Investment Partners (Singapore) made a strategic move by completely liquidating its XPeng Inc. (NYSE:XPEV) holdings. The Singapore-based fund disposed of 500,000 shares, translating to approximately $8.94 million in transaction value calculated at quarterly average prices. This represents a full exit, leaving zero remaining stake in the electric vehicle manufacturer.

Portfolio Impact and Fund Composition

The liquidation marks a significant shift in Arrowpoint’s asset allocation. XPeng previously represented 8% of the fund’s assets under management (AUM) in the prior quarter, but following this trade, the position now accounts for 0% of AUM. The fund has rebalanced its portfolio, with top holdings now concentrated in:

• NYSE:AEG: $15,407,748 (15.4% of AUM)
• NASDAQ:SATS: $3,769,740 (3.8% of AUM)
• NASDAQ:VCSH: $3,405,018 (3.4% of AUM)
• NASDAQ:ALAB: $3,403,396 (3.4% of AUM)
• NASDAQ:ATAT: $2,727,869 (2.7% of AUM)

Market Context: XPeng’s Strong Performance

The timing of Arrowpoint’s exit coincided with XPeng’s impressive rally. As of December 29, 2025, shares traded at $20.50, reflecting a 62% year-to-date gain that substantially outperformed the S&P 500. The company had peaked near $25 per share in Q3, representing more than a 100% year-to-date gain at that point—a milestone that may have triggered the profit-taking decision.

Understanding XPeng’s Business Model

XPeng operates in China’s premium and mid-market automotive segments, offering a diversified EV lineup including the G3 and G3i SUVs, P7 sports sedans, and P5 family sedans. The company generates revenue through vehicle sales and an integrated service ecosystem encompassing maintenance, super charging infrastructure, leasing programs, insurance products, and digital subscriptions. Its competitive advantage rests on proprietary in-house technology and a commitment to seamless customer experience.

Operational Momentum Through 2025

XPeng demonstrated robust production and delivery performance throughout 2025. Vehicle deliveries surged 156% year-over-year through November, bolstered significantly by aggressive export expansion initiatives. The company nearly doubled exported EV volumes, which now represent approximately 10% of total deliveries. This export momentum reflects broader competitive dynamics as China-based EV manufacturers intensify production and sales efforts both domestically and internationally.

Strategic Rationale Behind the Exit

The profit-taking appears deliberate and well-timed. Arrowpoint likely capitalized on XPeng’s peak valuation in Q3 to secure substantial gains. This decision reflects prudent portfolio management rather than necessarily indicating diminished confidence in the company’s fundamentals. The EV sector faces intensifying competition and moderating global sales growth, making selective capital redeployment a rational strategy for diversified institutional investors.

Current Company Metrics

Market Implications

While Arrowpoint’s complete exit signals a rebalancing move, it underscores the evolving challenges within the competitive EV landscape. Institutional capital is increasingly selective as differentiation becomes harder to achieve amid rising competition and normalization of growth rates. For investors monitoring XPeng and similar EV manufacturers, the fund’s decision exemplifies how even well-performing investments can warrant strategic repositioning based on valuation cycles and portfolio optimization objectives.