Macquarie Downgrades XPeng to Neutral, $19 PT

Macquarie analyst Eugene Hsiao downgraded XPeng (NYSE: XPEV) from Outperform to Neutral with a price target of $19.00 (from $24.00).

“We still like XPeng’s physical AI optionality, but cannot ignore the hard truth that volume growth is no guarantee this year.

Shares typically outperform when XPeng releases a clear hit product (e.g., P7+, Mona M03), but it remains too early to judge if the upcoming GX or new Mona SUV series in 2H25 will have a similar impact.

Earnings changes: We lower FY26E unit volume by 7% on soft early demand.

Our GPM improves 60bps on higher other income mix, but our FY26E loss per share estimate drops to -Rmb1.28 from -Rmb0.45 amid higher R&D spend. We introduce our FY28E estimates.”

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