Several Wall Street analysts have updated their valuation on XPeng following the company’s first-quarter earnings results on Thursday.
The Guangzhou-based automaker reported a wider quarterly net loss as vehicle deliveries fell by a third between January and March.
XPeng guided, however, for a steep recovery in the second quarter, aided by the launch of its flagship GX SUV, for which founder and CEO He Xiaopeng said last week that early demand has exceeded expectations.
BofA Securities, which has reiterated a Buy rating on the company’s US-listed shares, has raised its price target on the stock to $25 from $24.
The new target implies a 52.1% upside potential on the stock price, based on Thursday’s closing price of $16.44.
XPeng‘s shares are set to slowly recover from a difficult stretch.
Earlier this month, the stock fell to a 15-month low of $14.91 — an intraday level that marked roughly a 47% decline from the 52-week high of $28.24 reached last November.
The move extended a slide that had left shares down approximately a quarter of their value since the start of the year, as investors weighed persistent delivery declines against the company’s increasingly capital-intensive expansion into robotaxis, humanoid robots, and international manufacturing.
BofA analyst Ming Hsun Lee has justified the increase in the company’s upcoming autonomy products, including both the Robotaxi project — for which production began earlier this month — and the humanoid robot IRON, which He Xiaopeng said is on track to begin mass production by year-end.
GX to Lift Q2 Results
BofA highlighted that XPeng is expecting deliveries of between 100,000 and 106,000 units in the second quarter — which places the figures between being either down by 3% or up by 3% year over year.
Considering it delivered 31,011 vehicles in April, the company needs between 68,989 and 74,989 deliveries across May and June combined to reach the range.
The jump in deliveries — compared to the 62,682 units of the first quarter — is “supported by better-than-expected GX orders,” the analyst noted.
Earlier this week, Deutsche Bank said in a new research note that the model’s early success led May orders to reach “about 50,000” units, leading the stock to surge on the news.
According to the online configurator for the SUV, delivery waiting times extend from four weeks to 34 (equivalent to over eight months), with most orders so far having been placed for the flagship BEV version of the model.
Lee expects XPeng‘s second-quarter gross margin to come in roughly flat compared to the first quarter, supported by a richer product mix — the GX carries the highest gross margin of any vehicle in the current lineup — and partially offset by rising material costs.
Beyond the GX, the automaker is rolling out a total of four new SUV models, which the analyst expects to support sequential volume growth through the final three quarters of the year.
Outlook Update
Factoring in the first-quarter results and the updated delivery guidance, BofA has lifted its 2026, 2027, and 2028 volume sales estimates by 5% across all three years.
Gross margin assumptions have been revised upward by 1.3 percentage points for 2026, while being trimmed by 0.3 and 0.7 percentage points for 2027 and 2028, respectively.
The firm also lowered its operating expense-to-sales ratio projections by 0.9 percentage points for 2026, 0.4 for 2027, and 0.4 for 2028.
On a net basis, BofA has narrowed its projected non-GAAP net loss for 2026, while widening its 2027 non-GAAP net loss estimate.
The firm continues to forecast a non-GAAP net loss for 2028.
Lower PT, Remain Bullish
Other Wall Street firms also updated their price targets following the results, trimming their valuations while maintaining positive ratings on the stock.
JPMorgan analyst Nick Lai lowered his price target on XPeng to $30 (from $34), while keeping an Overweight rating on the shares.
The cut marks the second consecutive reduction from the $50 target Lai set in November 2025, when the stock surged on the company’s AI Day commitments to deploy three robotaxi models in 2026.
Based on Thursday’s closing price of $16.44, the revised target still implies an upside potential of 82.5%.
Citi analyst Jeff Chung also cut his price target to $22.50 — from $25.60 — while maintaining a Buy rating.
Chung upgraded XPeng to Buy in March 2025 — raising his target at the time to $29.00 from $13.70 — on the back of volume growth and the company’s expanding AI and robotics ambitions.
The current trim reflects margin pressures and cost headwinds, though Chung’s positive stance on the stock remains in place.
The $22.50 target represents a 36.9% upside potential from Thursday’s close.
Both targets remain well above current trading levels, reflecting continued conviction from major banks in XPeng‘s recovery prospects even as the stock trades near multi-month lows.
