Alibaba to Trim Investment in XPeng With $391 Million Sell-off

Taobao to cut its stake in electric car maker XPeng although Alibaba says cooperation on cloud computing will continue

In the third quarter this year, XPeng posted a wider-than-expected net loss of 3.89 billion yuan, although its deliveries expanded 72% from the previous quarter to 40,008 vehicles

Taobao China Holding Ltd., a subsidiary of Alibaba Group Holding Ltd., is planning to reduce its stake in the electric car startup XPeng Inc. to cash in around $391 million.

Taobao intends to sell 25 million of XPeng’s American depositary receipts, slashing its holding from 10.2% to 7.5%, New York-traded XPeng said in a Friday filing. After the sale, the online marketplace operator will remain XPeng’s second largest shareholder, after its co-founder He Xiaopeng.

The stake to be sold would be worth $391 million, based on Thursday’s closing share price. XPeng’s shares were trading up to 1.5% lower Monday, extending a 7.54% plunge on Friday.