This $32 Million Bet Puts Nearly 10% of One Fund Into a China EV Stock Up 26%
Key Points
Yong Rong bought 1,588,000 shares of XPeng in the fourth quarter; the estimated trade value $32.20 million based on quarterly average pricing.
This was a new position for the fund, which did not report holding XPEV shares in the previous period.
XPeng represents 9.76% of fund AUM, which places it outside the fund's top five holdings.
On January 29, Yong Rong (HK) Asset Management Ltd disclosed a new position in XPeng (NYSE:XPEV), acquiring 1,588,000 shares in a trade estimated at $32.20 million based on quarterly average pricing.
What happened
According to a SEC filing dated January 29, Yong Rong (HK) Asset Management disclosed a new position in XPeng (NYSE:XPEV), purchasing 1,588,000 shares. The quarter-end value of the XPeng position stood at $32.20 million, reflecting the share acquisition.
What else to know
The XPeng stake accounts for 9.76% of Yong Rong (HK) Asset Management Ltd’s 13F reportable assets under management as of December 31.
Top five holdings after the filing:
- NYSE: CRCL: $78.84 million (24.0% of AUM)
- NASDAQ: GOOGL: $47.01 million (14.3% of AUM)
- NASDAQ: SUPX: $43.09 million (13.1% of AUM)
- NASDAQ: BULL: $38.85 million (11.8% of AUM)
- NASDAQ: ETHA: $32.91 million (10.0% of AUM)
As of January 29, shares of XPeng were priced at $18.59, up 25.5% over the past year, outperforming the S&P 500 by 10.13 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of January 29) | $18.59 |
| Market capitalization | $17.66 billion |
| Revenue (TTM) | $10.15 billion |
| Net income (TTM) | ($410.46 million) |
Company snapshot
- XPeng designs and manufactures smart electric vehicles, including SUVs (G3, G3i), sports sedans (P7), and family sedans (P5), and offers related services such as maintenance, charging, leasing, and insurance.
- The company generates revenue primarily through the sale of electric vehicles, complemented by after-sales services, ride-hailing, technical support, and financial products.
- XPeng targets consumers in China seeking advanced, connected, and energy-efficient vehicles, with a focus on tech-savvy and environmentally conscious buyers.
XPeng is a leading Chinese electric vehicle manufacturer headquartered in Guangzhou. The company leverages proprietary technology to deliver smart, connected vehicles and a comprehensive suite of mobility services.
What this transaction means for investors
By allocating nearly 10% of reported assets to this single EV name, Yong Rong is displaying a meaningful shift toward concentrated, growth-oriented risk in a portfolio otherwise anchored by large-cap U.S. equities and thematic exposure. That positioning matters because it suggests confidence not just in the company’s near-term rebound, but in its longer-term competitive footing within China’s increasingly crowded EV market.
XPeng’s latest earnings offered a mixed but improving picture. Vehicle deliveries continued to recover, margins showed early stabilization, and management reiterated its focus on cost controls and platform efficiency. While profitability remains elusive, the company has leaned into software-driven differentiation and higher-end models as it navigates price competition across China’s EV landscape.
For long-term investors, the trade highlights a willingness to tolerate volatility in exchange for asymmetric upside. XPeng shares have already climbed more than 25% over the past year, yet still trade well below prior cycle highs. Making this stake one of the fund’s largest holdings suggests the manager views current pricing as an entry point rather than an exit.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
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