On May 21, Morgan Stanley maintained its "overweight" rating on XPEV (XPEV) stock and gave it a target price of $26 after XPENG Motors released its 2025 Q1 financial report. Morgan Stanley believes that XPENG is showing signs of "structural repair" and "clarification of profit path". The strong product delivery rhythm, recovery in gross profit margin and sufficient cash flow have jointly enhanced the feasibility of its continued investment in AI and intelligent driving, and maintained an optimistic judgment on the company's medium- and long-term growth potential.