XPeng‘s US-listed shares jumped nearly 5% on Friday’s pre-market session after Morgan Stanley included the Guangzhou-based automaker in its Global Emerging Markets (GEM) Focus List.
As of press time, the stock is jumping 4.5% at $22.25 — its highest value over the past month.
The surge in the US-listed shares follows a similar rise in Hong Kong, where XPeng‘s shares reached a high of $93.45 during Friday’s trading session and closed up 5% at HK$90.80.
Earlier on Friday, Morgan Stanley analyst Tim Hsiao said in a new research note — obtained by PriceTarget — that the firm was replacing Shenzhen-based BYD for XPeng in both its GEM and Asia Pacific Market (excluding Japan) focus lists.
According to the analyst, “XPeng has a robust model pipeline and is also identified as a leading AI adopter,” which also led him to reiterate an Overweight rating and HK$108 price target on the stock.
Considering Friday’s close at HK$90.80, the price target implies a potential upside of 18.9% on the share’s value.
Tim Hsiao anticipates a “significant surge” in XPeng‘s monthly sales in 2025, driven by the successful rollout of several new models and its strong model lineup.
This growth is expected to continue into 2026, supported by the launch of the company’s advanced super electric hybrid system.
XPeng is on track to debut its first ever hybrid-powered vehicles — the range-extended version of the X9 multi-purpose van (MPV) and a hybrid version of the G7 SUV.
Prior to these, the Guangzhou-based company only produced fully electric models since its inception 11 years ago.
The fully electric G7 SUV was launched in early July in China and is priced between 195,800 and 225,800 yuan ($27,300–$31,500).
The updated P7 sedan was also launched in China late last month, with deliveries beginning shortly after. The vehicle, priced from 219,800 yuan ($30,800), secured more than 10,000 firm orders in the first seven minutes.
According to Hsiao, “more meaningful margin improvement should materialize from 2025 when scale benefit of new models kicks in fully.”
The company is further expanding its market presence and vehicle lineup overseas.
It has recently partnered with Charge+ to offer fast charging in Singapore, Malaysia and Thailand.
Earlier this week, it expanded into three new European countries, bringing its total presence to 49 markets worldwide — moving closer to its goal of reaching 60 regions by year-end.
Last week, XPeng also announced its first European vehicles have rolled off the production line in Austria, in collaboration with Magna Steyr — shortly after it unveiled its first R&D center in Europe, located in Munich.
Analysts have also taken note of the brand’s collaborations with other European-based companies.
Tim Hsiao said that XPeng‘s “strategic partnership with Volkswagen is likely to be a critical step for vehicle makers to move beyond the traditional business model and generate a new revenue stream, mainly from software/service, which is higher-margin and recurring.”
In 2024, Volkswagen partnered with XPeng for the joint development of two mid-size fully electric models for the Chinese market.
Volkswagen invested about $700 million in a 4.99% stake in XPeng, a purchase that was completed by year-end.
The two companies have since expanded their cooperation in China beyond electric vehicles to include hybrid and internal combustion engine (ICE) models.
In the third week of September, the company’s sales in its domestic market reached 9,200 vehicles, its highest sales figures since the last week of July and the best weekly results of the third quarter.
