Xpeng Stock

Deutsche Bank analysts reduced their price target on Xpeng Motors by $7 to $48, mostly to account for downward re-rating in the peer group.

At press time, Nio was down 10 percent to $45.59. Between February 10 and Monday, Nio accumulated a 19 percent decline.

The 180-day lock-up period on shares of Chinese electric car maker Xpeng Motors expired February 22 EST, and they will be free to float from February 23.

Xpeng's January shipments reached a record 6,015 units, a 470% year-on-year jump, which Credit Suisse said reflects Xpeng's improved shipment capacity, newly introduced smart systems, ability to expand its brand and marketing efforts.

The analyst is bullish on Xpeng's long-term growth prospects in China's electric vehicle market, where it has taken first-mover action in developing the full range of in-vehicle and autonomous driving systems.

Xpeng's stock could gather some upward momentum from investors driven by the positive sentiment around XPILOT 3.0 and its upcoming new sedan with LiDAR, according to Deutsche Bank analysts led by Edison Yu in a note to investors on Thursday.

Short sellers are active in the US stock market, for example, Tesla has been plagued by short sellers for a long time and Nio has been shorted as well. How should Xpeng respond if it also encounters this situation?

Xpeng is up over 80% since its IPO in late August, Nio is up 1,130% this year, and Li Auto is up 78% since its IPO in late July.

Capital market enthusiasm has driven the industry to over-valuation, the analysts say.

The price target represents a 31 percent upside potential to the Chinese electric car company's Friday closing price of $44.31.