XPeng's Upgrade to 'Buy' Indicates Strong Growth Potential

XPeng Inc. (XPEV) stock has been upgraded to 'Buy' by The Asian Investor, citing strong growth in vehicle deliveries and improved profit margins. Analysts forecast a potential upside of 4.22% with an average target price of $24.82, while the GF Value estimate indicates a more significant upside potential of 37.58% for XPeng in the coming year.

XPeng Inc. (XPEV) stock has received a significant boost as The Asian Investor has upgraded its rating to 'Buy,' citing robust growth in vehicle deliveries and enhanced profit margins. The upgrade comes with a potential upside of 4.22%, with an average target price of $24.82, according to the analysts. Meanwhile, the GF Value estimate suggests a more substantial upside potential of 37.58% for XPeng in the coming year.

The Asian Investor's positive outlook is supported by XPeng's impressive performance in the second quarter of 2025. The company reported a gross margin of 17.3%, driven by cost cuts and premium model sales, narrowing the gap with Tesla's 24.9% margin [2]. Additionally, XPeng delivered 103,181 vehicles, a 241.6% year-over-year (YoY) increase, and expanded its infrastructure to 2,348 charging stations, contributing to revenue growth to $2.55 billion.

The upgrade also reflects XPeng's strategic investments in autonomous driving research and development. The company spent $0.31 billion in Q2 2025 on R&D, developing a 2,250 TOPS Turing chip and planning 2026 RoboTaxi services to monetize AI-driven mobility [2].

While strategic risks such as regulatory hurdles and high R&D costs remain, XPeng's AI-first approach positions it to capture long-term value in the EV and autonomous driving ecosystems.

The Asian Investor's upgrade aligns with other analyst ratings. Morgan Stanley set a $28.00 price target on shares of XPeng and gave the stock an "overweight" rating, while Goldman Sachs upgraded to a "buy" rating with a target of $24.00 [1]. These positive assessments suggest that XPeng is well-positioned for growth in the competitive EV market.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-neuberger-berman-group-llc-purchases-new-shares-in-xpeng-inc-sponsored-adr-nysexpev-2025-08-15/
[2] https://www.ainvest.com/news/xpeng-path-profitability-strategic-assessment-q2-2025-performance-long-term-growth-potential-2508/