Macquarie Raises XPeng Inc. (NYSE: XPEV), one of China’s most innovative electric vehicle makers, has received another vote of confidence from Wall Street. Macquarie has lifted its price target on XPeng shares from $24 to $25 while keeping an Outperform rating. This comes as the company continues to push forward with stronger margins, expanding deliveries, and new advancements in autonomous driving.
The revised target aligns with XPeng’s strong year-to-date performance, with the stock already up 64% in 2025, according to Investing data.
Macquarie Raises XPeng’s Price Target? Why did?
- Macquarie highlighted several key reasons behind its upgrade:
- Vehicle margin expansion: XPeng’s gross profit margin currently stands at 15.2%, and analysts expect further improvement as production efficiency and economies of scale kick in.
- Robust revenue growth: XPeng reported a 51% year-over-year revenue increase, proving demand for its EV models remains strong.
- Valuation update: The firm rolled forward its estimates to fiscal year 2026, applying a 1.5x price-to-sales multiple, which supports the higher target price.
- Upside from foreign exchange gains: Peer companies have recently benefited from FX gains, suggesting XPeng could also see non-operating boosts to earnings.
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Recent Analyst Upgrades Boosting XPeng
- Macquarie isn’t the only major institution bullish on XPeng:
- Goldman Sachs recently upgraded XPeng from Neutral to Buy, setting a target price of $24 (US listing) and HK$94 (Hong Kong listing). The bank cited organizational restructuring and cost-cutting in technology as catalysts
- CFRA shifted its rating from Strong Sell to Hold, raising its target to $20. CFRA forecasts XPeng’s revenue will jump 117% in 2025 and another 24% in 2026, fueled by new model launches.
- Together, these upgrades indicate increasing confidence in XPeng’s ability to grow its market share both in China and globally.
XPeng’s Strategic Moves in 2025
XPeng isn’t just focusing on selling cars—it’s aggressively building its technology edge. Some highlights include:
Advanced Chip Development
Reports suggest XPeng is working on self-designed Turing processors for Volkswagen vehicles, claiming performance levels that rival or even surpass Nvidia chips.
If true, this could position XPeng as a key technology supplier, not just an EV maker.
Autonomous Driving Leadership
XPeng was the only Chinese automaker invited to present at the 2025 CVPR Conference on Computer Vision and Pattern Recognition in Nashville.
Its presentation, “Scaling up Autonomous Driving via Large Foundation Models,” shows the company’s ambition to lead in AI-driven self-driving solutions.
Delivery Growth
Analysts expect XPeng to achieve a 180% increase in vehicle deliveries in 2025, driven by new launches and market expansion. However, the company may face some margin pressure as cheaper models become a larger part of its sales mix.
What This Means for Investors
The latest price target increase to $25 positions XPeng in the mid-range of analysts’ expectations, which currently span from $18.05 to $35.64. While growth prospects look promising, risks remain:
Heavy competition in the EV sector, especially from BYD, Tesla, and Li Auto.
Potential margin pressure if lower-priced vehicles dominate sales.
Dependence on subsidies and foreign exchange gains in past results.
Still, XPeng’s focus on technology, global expansion, and margin improvements has convinced multiple analysts that the stock deserves a closer look in 2025.
FAQs on Macquarie Raises XPeng Stock (XPEV)
Q1: Why did Macquarie raise XPeng’s price target?
Macquarie cited vehicle margin expansion, robust revenue growth, and updated FY2026 valuations as reasons for raising the target to $25.
Q2: How is XPeng performing financially?
XPeng reported a 51% year-over-year revenue increase and currently has a 15.2% gross profit margin. Analysts expect further growth with higher deliveries in 2025.
Q3: What are XPeng’s biggest growth drivers
Delivery expansion (180% growth expected in 2025), advanced chip development, and leadership in autonomous driving technology are key growth drivers.
Q4: Is XPeng stock a buy right now?
Several firms, including Macquarie and Goldman Sachs, rate XPeng as Outperform/Buy. However, investors should weigh risks like competition, pricing pressure, and global market conditions before investing.
Q5: What is the analyst target range for XPeng?
Analyst targets range from $18.05 to $35.64, with Macquarie now setting a mid-range target at $25.