<div id="readability-page-1"><p>Chinese electric vehicle (EV) maker XPeng (XPEV) posted a loss for Q1 2026 due to sluggish sales, marking a reversal from its first-ever quarterly profit reported for the fourth quarter of 2025. However, the company's Q1 2026 gross margin improved significantly to 20.6% from 15.6% in the prior-year quarter. Also, XPeng issued an encouraging Q2 deliveries outlook in the range of 100,000 to 106,000 units, reflecting up to 69.1% sequential growth. Citing optimism about XPeng's new models, Macquarie analyst Eugene Hsiao upgraded XPeng stock to Buy from Hold with an unchanged price target of $19 and HK$73.</p><h3>Memorial Day Sale – Claim 70% Off TipRanks</h3><ul><li>Unlock trusted, data-backed investing tools with TipRanks Premium, from analyst ratings and forecasts to breaking news and portfolio analysis.  </li><li>Discover high-conviction stock picks and new investing opportunities with the TipRanks Smart Investor Newsletter </li></ul> <p>Also, Bank of America analyst Ming Hsun Lee slightly raised his price target for XPEV stock and reiterated a Buy rating.</p> <h2><strong>Macquarie Turns Bullish on XPEV Stock</strong></h2> <p>Hsiao believes the worst of the volume decline is behind, given the robust order intake for XPeng's new GX model, which will be followed by the launch of the new MONA SUVs (L03/L05) and the larger G9L. Furthermore, the 4-star analyst sees potential upside from XPeng's future investments in humanoids and robotaxi.</p> <p>Meanwhile, Hsiao increased his Fiscal 2026 unit volume guidance by 7% to reflect higher-than expected GX orders. Also, the analyst increased his gross margin estimate by 20 basis points on a better mix. However, Hsiao's Fiscal 2026 loss per share estimate now stands at -RMB 1.97, compared to the previous estimate of -RMB 1.28 due to higher research and development spending.</p> <p>Hsiao increased his sales forecast, but slightly reduced his P/S target multiple to 1.3x FY26 sales estimate from 1.4x based on XPEV's EV and tech peer comparables.</p> <h2><strong>BofA Stays Bullish on XPEV Stock</strong></h2> <p>Bank of America's Lee slightly raised his price target, noting upbeat GX orders. The 4-star analyst highlighted that XPeng's Q1 results reflected rapidly growing overseas sales, which accounted for 20% of the overall revenue, with management targeting more than 10,000 monthly overseas unit sales by Q4 2026 and over 100% annual growth.</p> <p>Looking ahead, Lee noted XPeng's Q2 2026 deliveries outlook in the 100,000 to 106,000 units. He added that the company expects its second-quarter gross margin to be essentially unchanged on a quarter-over-quarter basis, supported by better product mix due to the higher-margin GX model, partially offset by higher material costs.</p> <p>Also, Lee highlighted that starting with GX, XPeng is launching four SUV models, which are expected to drive higher volumes in Q2 to Q4 2026. The analyst raised his 2026, 2027, and 2028 sales volume estimates by 5% each year, while adjusting his gross margin estimates by +1.3 percentage points, -0.3 percentage points, and -0.7 percentage points.</p> <p>Overall, Lee remains bullish on XPeng as it expects new business, such as robotaxi and humanoid robots, to support its valuation.</p> <h2><strong>Is XPEV a Good Stock to Buy?</strong></h2> <p>Overall, Wall Street has a Moderate Buy consensus rating on XPeng stock based on eight Buys, two Holds, and one Sell. The average XPEV stock price target of $24 indicates 45.4% upside potential.</p></div>

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<p>Macquarie upgraded XPeng (XPEV) to Buy and BofA raised its price target following Q1 2026 earnings. Despite a quarterly loss due to sluggish sales, XPeng's gross margin improved to 20.6%. Analysts cited strong order intake for new models like the GX and optimistic Q2 delivery forecasts of 100,000-106,000 units as key drivers for their bullish outlook, highlighting potential upside from future investments in robotaxis and humanoid robots.</p>

- XPeng (XPEV) reported a loss for Q1 2026 due to sluggish sales, despite a significant gross margin improvement to 20.6%.  
- Analysts from Macquarie and Bank of America have raised price targets and maintained Buy ratings, citing optimism around new models and increased sales projections.  
- XPeng is targeting over 10,000 monthly overseas unit sales by Q4 2026, with a strong outlook for Q2 deliveries between 100,000 and 106,000 units, suggesting potential for recovery.

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Macquarie Upgrades XPeng Stock to Buy (XPEV) after Q1 Earnings; BofA Raises Price Target