OAKLAND, Calif.--(BUSINESS WIRE)--Shares of XPEL, Inc. dropped over 8% on Wednesday, November 8, 2023 after releasing a third quarter report showing its revenue and profits missed analysts’ estimates. Previously, XPEL plummeted over 17% on October 19, 2023 after Culper Research published a report alleging that the company “grossly understated its substantial reliance on Tesla” and also “is concealing a massive undisclosed risk.” Gibbs Law Group is investigating a potential XPEL Securities Class Action Lawsuit on behalf of shareholders who lost money in XPEL, Inc. (NASDAQ:XPEL).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Thursday, October 19, 2023, Culper Research published a report alleging that protective film and coating company XPEL, Inc. has been concealing and misstating its vulnerabilities. The report alleges that, despite XPEL claiming in a Form 8-K filing that Tesla represents only 5% or less of its revenue pertaining to paint protection film, interviews with XPEL installers reveal the true number is likely 25% to 35%. According to Culper Research, XPEL published the 5% figure in response to news reports on October 11, 2023 suggesting Tesla had begun offering its own pain protection films, effectively disintermediating XPEL.
Culper Research also claims that XPEL, which it asserts has “merely licensed” protective films and does not itself develop them, is concealing the news that its longtime primary supplier, entrotech, recently formed a joint venture with PPG that will soon render XPEL’s business “obsolete.” According to Culper Research, a representative from the joint venture claims they’ve found a way to integrate the paint protection technology directly into the paint. As a result, XPEL’s product, an “aftermarket wrap,” may have been “leapfrogged.”
Following this report, XPEL’s stock price dropped 17% on Thursday, October 19, 2023, causing significant harm to investors.
What Should XPEL Investors Do?
If you invested in XPEL, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether XPEL, Inc. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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