XPeng Inc.'s weaker-than-expected Q4 revenue forecast led to a more than 10% overnight drop in its ADRs. Citi slightly lowered its target prices for XPeng's U.S. and Hong Kong-listed shares by over 3%, citing seasonal weakness in Q1 auto sales, but remains optimistic about the company's diversified growth potential in the coming year.
Analyst Jeff Chung and his team noted that after the analyst briefing, they modestly adjusted XPeng's 2025 sales forecast to align with the company's updated guidance.
By 2026, XPeng plans to launch seven new vehicle models and initiate trial operations for its Robotaxi service.
The company aims to begin mass production of humanoid robots by late 2026, with management projecting that the total addressable market for these robots could surpass that of electric vehicles. XPeng targets global sales of over 1 million units for its robots by 2030.
Citi reduced its U.S. stock target price for XPeng by 3.4% to $28.40 and its Hong Kong stock target price by 3.7% to HK$110.60.