XPeng Rating Cut to Neutral with $19 Target; Trails Leapmotor Profit
Macquarie cut XPeng’s rating to Neutral from Outperform and trimmed its price target to $19 from $24, citing uncertain volume growth this year despite strong AI hardware prospects. A recent report shows Leapmotor delivered 596,555 units in 2025 and achieved 540 million yuan net profit, highlighting XPeng’s lag in profitability.
1. Macquarie Rating Cut
Macquarie downgraded XPeng to Neutral from Outperform and reduced its price target from $24 to $19. The firm highlighted uncertainty around vehicle volume growth for the year ahead as the key concern.
2. AI Optionality Versus Growth Outlook
While acknowledging XPeng’s advanced in-car AI hardware and software capabilities, Macquarie warned that strong optionality does not guarantee sustained delivery increases or revenue gains in the near term.
3. Leapmotor’s Profit Benchmark
Leapmotor delivered 596,555 vehicles in 2025 and posted 540 million yuan in net profit, marking its first annual profit and underscoring XPeng’s challenges in achieving positive margins and matching peer growth.