Electric Carmaker Xpeng's IPO Jumps 54% 

Guangzhou, China-based Xpeng Motors Inc. (NYSE: XPEV) raised approximately $1.5 billion Thursday morning in the company’s initial public offering (IPO). Shares were priced at $15, above the expected range of $11 to $13, and Xpeng also boosted its offer from 85 million American depositary shares (ADS) to 99.7 million. Each ADS is equal to two ordinary shares.

This is the second IPO for a China-based electric vehicle maker in less than a month. On July 30, Li Auto Inc. (NASDAQ: LI) came public at $11.50 per share, above its expected range of $8 to $10, and raised about $1.1 billion by selling 95 million ADSs.

One has to wonder if the demand for EV-makers’ stocks hasn’t outrun demand for their vehicles. Tesla Inc. (NASDAQ: TSLA) has added about 440% to its share price so far in 2020, and the stock shows no signs of pulling back. With a market cap of around $400 billion, Tesla is the world’s most valuable car company.

At its opening price of $23.10 per share, Xpeng has a market cap of around $17 billion, roughly equal to Li Auto and about 30% below Nio Ltd. (NYSE: NIO) with a market cap of around $24 billion.

Xpeng’s first trading has cast a chill on Li Auto’s stock. The ADSs are trading down more than 16% at $19.59 in a post-IPO range of $14.31 to $24.48. The consensus price target on the stock is $19.85.

Nio traded down about 2%, at $20.04 in a 52-week range of $1.19 to $20.97. The high was posted Wednesday. The price target on the stock is $13.02.

Xpeng traded up nearly 59% at $23.80 in the mid-afternoon Wednesday. The stock’s range Thursday is $22.27 to $25.00.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.