This is the latest reduction in Alibaba's holdings after it sold 25 million of Xpeng's ADSs last year. An Alibaba executive resigned as a director of Xpeng.

Earlier yesterday, Xpeng said in a Hong Kong stock exchange announcement that it terminated an agreement with Taobao China entered into in June 2021 for the appointment of the Alibaba candidate as a director.

At the same time, Xpeng said in the announcement that Alibaba executive Hu Xiao resigned as its director.

He Xiaopeng, Xpeng's chairman and CEO, thanked Alibaba for its support and said he looked forward to continued deep collaboration with the company's AI technology and innovation ecosystem.

On July 26, 2023, German automotive giant Volkswagen announced that it had signed an agreement with Xpeng to invest about $700 million in the Chinese EV maker in order to acquire about 4.99 percent of the latter.

Xpeng, VW ink joint sourcing program to reduce platform costs