JPMorgan analyst Nick Lai reduced the firm’s price targets on US-listed Chinese automakers XPeng and Nio by 32% and 12.5%, respectively, while maintaining Overweight ratings on both stocks.
Lai lowered XPeng‘s price target to $34.00 from $50.00.
Based on Friday’s closing price of $17.72, the new target still implies an upside potential of approximately 92%.
The stock surged nearly 5% on Friday and was trading 1.6% lower at $17.43 in the first minutes of Monday’s trading session.
The price cut comes days after two of XPeng‘s largest institutional shareholders disclosed they had slashed their holdings by half in the fourth quarter of 2025, as reported by EV on Friday.
XPeng unveiled last week the first images of its upcoming six-seat luxury SUV, the GX.
The model appeared in China’s latest Ministry of Industry and Information Technology (MIIT) catalogue released Friday, ahead of the launch.
Founder and CEO He Xiaopeng said Thursday the vehicle would arrive “in the months ahead” without disclosing a specific date.
Separately, Volkswagen AG’s collaboration with XPeng on the China Electronic Architecture (CEA) ended last year, according to Reuters.
However, an XPeng spokesperson told EV over the weekend that the information stemmed from a miscommunication and the matter is being clarified.
XPeng has an ambitious 2026 roadmap that extends beyond vehicles.
The luxurious 6-seater SUV GX will compete with Nio’s upcoming ES9 and Zeekr’s 9X in the premium six-seat SUV segment.
The company also plans to launch more affordable models under its Mona sub-brand, begin mass production of its IRON humanoid robot, and deploy robotaxis.
Nio
Lai cut Nio‘s price target to $7.00 from $8.00.
JPMorgan has shifted its stance on Nio multiple times over the past year.
The bank downgraded the stock to Neutral from Overweight in February 2025, with Lai cutting the target to $4.70 from $7.00.
The target was later trimmed to $4.10 before being raised to $4.80 in August as the bank increased delivery forecasts for 2026 and 2027.
The stock jumped 7% on Friday to close at $5.04, a day after the company pre-announced it expects to report both GAAP and non-GAAP profitability for the first time when it releases fourth-quarter 2025 results.
Achieving non-GAAP profitability was the EV maker’s primary target for 2025.
On Monday, Nio shares were trading 1.2% lower at $4.98 in pre-market trading after China’s market regulator announced an over-the-air software fix affecting approximately 246,000 vehicles — roughly one in four cars the company has delivered in China since 2018.
Nio has set aggressive growth targets for 2026, aiming to increase global sales by 40% to 50% from last year’s 326,028 deliveries.
The company plans to expand into several new markets, including Costa Rica — its first in the Americas — but also Australia, New Zealand, the UK, among others.
On the product side, Nio is preparing to launch three large SUVs, including the ES9, while continuing to build out its battery swap infrastructure with more than 1,000 new stations planned in China and the unveiling of its fifth-generation swap technology.
Nio shares are down 4% year to date despite last week’s surge following the profitability guidance.
Over the past three months, the stock has fallen 27.3%, though it has gained 12% over the past 12 months.
