JPMorgan released a research report indicating that XPENG-W's full-year 2025 profit, calculated on a non-GAAP basis, exceeded the bank's and market expectations by 50% to 70%, delivering a strong performance. The group achieved quarterly profitability for the first time in the fourth quarter of last year, with its annual net loss narrowing, primarily benefiting from increased vehicle sales, an optimized product mix, and positive contributions from non-automotive businesses such as after-sales services, auto financing, and Volkswagen technical service fees. The firm maintained its "Overweight" rating on XPeng's Hong Kong shares and ADRs, with a target price of HKD 135 for the Hong Kong shares and USD 34 for XPeng Inc.'s US-listed shares.

The report stated that management provided detailed explanations during the earnings call regarding the group's long-term strategy centered on embodied AI and AI-powered mobility technology, covering autonomous driving, humanoid robots, and high-performance computing capabilities. They also outlined near-term catalysts for 2026, including accelerated overseas product deployment, the launch of VLA 2.0 advanced driver-assistance systems, the implementation of autonomous driving technology, mass production of humanoid robots, and a new vehicle model cycle.

JPMorgan views XPeng, along with NIO, as core recovery plays in China's automotive sector and considers them attractive buying opportunities for 2026. The bank anticipates that XPeng's share price has potential for further re-rating, supported by its leading technology portfolio, a robust new vehicle cycle in 2026, sustained improvements in profitability, solid overseas growth momentum, and diversified business contributions.