XPeng Reaffirmed 'Overweight' with HK$115 Target After VLA Test

Edgen Stock

·Mar 11 2026, 03:05

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Key Takeaways

Brokerage firm CMSI reiterated its 'Overweight' rating on XPeng following a successful 28-kilometer test drive of its new VLA smart driving system. The broker set a HK$115 price target, citing the technology's potential to drive future growth in its planned Robotaxi and robotics businesses.

Flawless Performance: XPeng's second-generation VLA system demonstrated stable performance, with most participants achieving zero takeovers during a 70-minute urban test drive on March 9.
Analyst Endorsement: Citing the company's technological capabilities, CMSI maintained its 'Overweight' rating on XPeng (09868.HK) and set a price target of HK$115 for its Hong Kong shares.
Strategic Synergies: The VLA system's development is expected to accelerate the launch of XPeng's Robotaxi business and support its robotics division, which is slated for mass production this year.

VLA System Navigates 28km Urban Gauntlet with Zero Takeovers

On March 9, XPeng's second-generation VLA smart driving system demonstrated its capabilities in a rigorous real-world test. The vehicle navigated a 28-kilometer urban route for approximately 70 minutes, successfully handling complex conditions including narrow side streets, blind spots, and dense traffic on main arterials. According to a research note from CMSI, which participated in the event, the vehicle performed with high stability, enabling the vast majority of participants to complete the entire journey with zero manual takeovers.

CMSI Reaffirms HK$115 Target on Smart Driving Strength

Following the successful demonstration, CMSI reaffirmed its 'Overweight' rating for XPeng's Hong Kong-listed stock (09868.HK), issuing a price target of HK$115. The firm also maintained a US$29 target for its U.S.-listed shares. The broker expressed optimism regarding XPeng's technology accumulation and continuous iteration, viewing the advanced VLA system as a key factor that will enhance the competitiveness of its entire product line.

New Tech Poised to Launch Robotaxi and Robotics This Year

The advancements showcased in the VLA system are expected to provide significant strategic benefits beyond consumer vehicles. CMSI anticipates the technology will directly support the launch of XPeng's Robotaxi business within the current year. Furthermore, the system's development creates synergies with the company's robotics business, which is scheduled to achieve mass production in 2026. This dual-pronged expansion highlights how XPeng's investment in autonomous driving is structured to create value across multiple future-oriented business lines.