Research Note

Deutsche Bank expects Xpeng to report mixed results for the second quarter, while the outlook for the third and fourth quarters will show meaningful sequential improvement driven by a strong G6 order book.

While Li Auto's underlying execution remains strong, Nio, Xpeng will be more compelling growth stories in coming quarters, said Deutsche Bank.

A solid order backlog and improving production ramp bode well for Nio's ongoing operational recovery and rising sales, Morgan Stanley said.

Following a price cut and a slew of new models, Nio's sales efficiency has improved materially and should maintain this level of demand for at least the rest of the third quarter, said Edison Yu's team.

Morgan Stanley raised its price target on Nio to $18.7, on Xpeng to $25.4, and on Li Auto to $53, all keeping their ratings at Overweight.

Volkswagen's deal with Xpeng could be the first of many strategic partnerships between global automakers and Chinese EV startups, Morgan Stanley said.

It's another sign that China's auto industry is changing rapidly and becoming hyper competitive, forcing major changes at traditional OEMs, Edison Yu's team said.

Pacific Securities has a buy rating on Nio's Hong Kong-traded shares, with a target price of HK$103.62, implying an upside of 26.14 percent.

The team has a HK$71.86 price target on Xpeng's Hong Kong-traded shares, implying an upside of 25.63 percent.

Goldman Sachs believes the market has yet to fully reflect the potential of the G6, with the model ranking No.1 among comparable models, and which is the most competitive product released by Xpeng to date.