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Investing.com -- Morgan Stanley raised its price target on XPeng Inc (NYSE:XPEV) following the launch of its G7 sport utility vehicle, which drew over 10,000 pre-sale orders within an hour.
The brokerage increased its target to $28 from $25 for the U.S.-listed shares, and to HK$108 from HK$96 in Hong Kong.
XPeng shares have risen more than 70% this year, outperforming the broader market.
The G7 is XPeng’s first model equipped with its in-house “Turing” AI chips, supporting Level 3 assisted-driving features. The vehicle includes an augmented reality head-up display co-developed with Huawei, and fast-charging capabilities standard across all versions.
“While constant competition risk and YTD stock outperformance may aggravate near-term volatility, we stay constructive on XPeng’s model pipeline and AI-related initiatives,” analyst at Morgan Stanley (NYSE:MS) added.
Morgan Stanley expects monthly G7 sales to reach 6,000 to 8,000 units, similar to peak volumes for XPeng’s G6 and G9 models.
It raised its 2025 to 2027 delivery forecasts by 5% to 8%, citing what it described as encouraging early demand for the G7 and the Mona Max, another upcoming model.
XPeng now aims to reach profitability by 2026, a year earlier than previously forecast.
While the brokerage remains positive on XPeng’s product roadmap, it flagged the potential for near-term volatility following the stock’s sharp rally.
The firm said the G7 launch had been a key catalyst, and that investor focus would shift to pricing details and delivery ramp-up ahead of a planned hybrid model later this year.
“Given that the G7 pre-sale orders, sales momentum over the following weekend, conversion, and delivery ramp-up in July will be key to underpinning further share price upside after it unveils the official price,” analyst added.