The shares of the Guangzhou, China, company at last check were down 4.3% at $36.39.
XPeng holders will offer about 10.5 million American depositary receipts at $32.25 to $35.75 each, depending on where the broker handling the large block of stock is able to set the price, according to Barron’s.
Each XPeng ADR represents two common shares. The company told Barron’s it can’t comment on stock sales by others.
The stock sale comes as a lockup of shares related to XPeng’s initial public offering expires.
Insiders and early investors are often prevented from selling shares in a newly public company for a period, typically 180 days. XPeng’s IPO took place in late August, about six months ago.
XPeng stock closed Monday at $38. Large blocks are often priced at a discount to the market because it is hard for brokers to sell a lot of stock at once.
Roughly 15 million XPeng shares trade a day, Barron’s said, so 10.5 million is a large amount to add on any given day.
The company’s shares were down about 21% in February.
Last month, XPeng announced its first vehicle recall since it debuted on American exchanges back in August.