Xpeng

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.

Xpeng CEO said he looks forward to working with Volkswagen to bring the best technology and products to the world. Volkswagen China CEO said the two share a common vision for the future of mobility.

Xpeng and Volkswagen will initially co-develop two B-segment BEVs sold under the Volkswagen brand in the Chinese market using Xpeng's G9 platform and ADAS software, with production expected to begin in 2026.

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

The mid-size crossover market is a high-volume market, competitive and cut-throat. The Xpeng G6 stands a good chance of carving out.

In June, Xpeng loaded more than 4,000 vehicles with CALB battery packs, or 70 percent of its production for the month.

They were last pictured together on June 6, 2020, when Nio, Xpeng, and Li Auto were all struggling to boost sales.

Li Auto said the data it shares are obtained in a legal, compliant manner from sources common to the auto industry.

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.