Stock Ratings

Given the accelerating penetration of EVs and the lack of high-quality listed EV names, there is large appetite for EV exposure in the mainland, said Edison Yu.

This means the team sees Xpeng outperforming the overall market by 10-20 percent within the next six months.

Deutsche Bank analyst Edison Yu's team sees three ways Chinese EV stocks could potentially come out of this slump.

The team said Nio is a first mover in the premium electric vehicle market and is bullish on its potential for intelligence and the expansion of its user base with lower-priced products.

The team expects Xpeng's sales to reach 190,000 units in 2022 and 550,000 units in 2025 with a 7 percent market share in China.

HSBC's price target increase is not due to a change in their expectations for Nio's sales or valuation, but rather due to changes in exchange rates.

BYD allayed UBS's concerns about increased competition and declining market share with 90,000 NEV sales per month in the fourth quarter.

CITIC Securities is bullish on ET5 becoming a top seller and Nio's potential to expand in overseas markets.

After a relatively uneventful 2021, Nio will see a product-rich year, and Edison Yu's team laid out what they see as the catalyst path for Nio stock in 2022.

Guosen Securities has an HKD 206-223 price target on Xpeng's shares traded in Hong Kong, implying upside of 17 percent to 26 percent.