On January 13th, a UBS research report revealed that the management team of XPENG (09868.HK) has indicated that the pricing strategy for its new models has incorporated considerations for fluctuations in trade-in policies. Consequently, it is projected that the pricing landscape will exhibit greater stability in 2026. The company is set to focus on cost optimization, maximizing the advantages of operational leverage, and solidifying its technological prowess.

Notwithstanding the surge in lithium prices, the management remains confident that the expansion in sales volume this year will be sufficient to mitigate the impact of rising raw material costs, thereby ensuring that the gross profit margin remains largely unaffected. Moreover, XPENG has outlined plans to integrate Turing chips into its forthcoming models, a move aimed at reducing costs while simultaneously enhancing performance. UBS has assigned a neutral rating to XPENG's (XPEV.N) shares listed on the US stock exchange, setting a target price of $18.