Morgan Stanley maintains a "overweight" rating on Xiaopeng with a target price of $26.

Morgan Stanley maintained an "overweight" rating on Xiaopeng Motors' stock and gave it a target price of $26 after Xiaopeng Motors released its first quarter financial report for 2025. Morgan Stanley believes that Xiaopeng has outperformed market expectations in several key financial and operational indicators, including strong revenue growth, significant narrowing of losses, delivery performance exceeding guidance, margin improvement, sufficient cash reserves, and positive outlook for the future. Morgan Stanley assesses that Xiaopeng is showing signs of "structural repair" and "clear profit path." The strong pace of product delivery, margin recovery, and sufficient cash flow collectively enhance the feasibility of its continued investment in AI and intelligent driving, maintaining an optimistic assessment of the company's medium to long-term growth potential.