Morgan Stanley Maintains a Buy Rating on XPeng (XPEV) After Q1 Report

On May 21, Analyst Tim Hsiao of Morgan Stanley maintained a Buy rating on XPeng Inc. (NYSE:XPEV) with a price target of $26. The rating comes after the company reported its fiscal first quarter results for 2025.

XPeng Inc. (NYSE:XPEV) reported quarterly revenue of RMB15.81 billion, reflecting a 141.5% year-over-year growth. The company also improved its quarterly gross margin by 2.7% to reach 15.6%. Notably, the net loss decreased significantly from RMB1.37 billion a year ago to RMB0.66 billion. Hsiao noted that this reduction in net loss was better than expected and was driven by the Chinese government subsidies.

Hsiao also highlighted XPeng Inc. (NYSE:XPEV) surpassed its revenue guidance for the quarter, driven by a stark increase in vehicle deliveries. The company delivered 94,008 vehicles during the quarter, up 330.8% year-over-year. Management has provided a positive outlook for the second quarter of 2025, with vehicle deliveries expected to be between 102,000 and 108,000 vehicles, representing a 237.7% to 257.5% increase year-over-year. The analyst noted that this suggests continued growth for the company, thereby justifying his Buy rating.

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