Xpeng (HK:9868) shares rallied in Hong Kong after Morgan Stanley added the Chinese electric-vehicle maker to its Global Emerging Markets and Asia Pacific excluding Japan (APxJ) Focus Lists, replacing BYD in both.
The stock jumped 5.03%, closing the Friday trading session at HKD90.80.
Morgan Stanley highlighted Xpeng’s strong model pipeline and positioning as a leading AI adopter. Analysts led by Tim Hsiao expect the company’s sales momentum to accelerate in 2025 and broaden further in 2026, supported by the launch of its new super electric hybrid system.
“With successful launches of several new models and a strong pipeline, Tim Hsiao and team expect XPeng’s monthly sales to take off in 2025 and expand further in 2026, underpinned by the debut of its super electric hybrid system,” the note said.
The Wall Street firm also pointed to margin expansion from 2027 as scale benefits of new models feed through.
It believes that Xpeng’s recently announced partnership with Volkswagen could be a critical step for automakers to diversify beyond traditional vehicle sales and capture higher-margin recurring revenues from software and services.
The two companies announced plans to expand their jointly developed regional electronic/electrical architecture (CEA) to cover not only locally built EVs but also gasoline and hybrid models in China starting in 2027.
Per the reports, the CEA platform is built on a central compute system that supports advanced driver assistance, integrates an in-car AI assistant, and enables fast full-vehicle OTA updates. By cutting the number of control units, it aims to simplify complexity, improve sustainability, and extend vehicle value through a unified software-defined design.
Source :
https://www.investing.com/news/stock-market-news/xpeng-rallies-in-hong-kong-as-morgan-stanley-adds-stock-to-its-focus-lists-4257140
