Morgan Stanley: XPeng Inc. (9868.HK) 1Q26 Call Takeaways — Growth to Build Through Year-End
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Morgan Stanley released key takeaways from XPeng's 1Q26 earnings call, expressing confidence that the electric vehicle maker's growth momentum will build through year-end. First-quarter deliveries reached 45,000 units, representing a 35 percent year-over-year increase and meeting market expectations. Gross margin improved by two percentage points sequentially to 12.5 percent, aided by operating leverage and cost optimization initiatives.
Management reaffirmed its full-year delivery target of 200,000 to 220,000 units and guided second-quarter volumes to 50,000 to 55,000 units, implying 40 to 54 percent year-over-year growth. The recently launched P7+ has accumulated over 15,000 orders since April, while the refreshed G6 has seen order intake rise 50 percent compared to the prior model. XPeng's MONA brand is set to introduce its first model, the M03, in 3Q26, targeting the 150,000 RMB segment.
The company holds approximately 30 billion RMB in cash, providing a sufficient runway for the next two years. European deliveries surged 80 percent quarter-over-quarter. Morgan Stanley maintained an Overweight rating with a target price of $15 for U.S. shares and HK$58 for Hong Kong shares. Risks include intensifying price competition, potential delivery delays for new models, and semiconductor supply fluctuations.