XPeng among Morgan Stanley’s preferred China Auto stocks in first half

Morgan Stanley believes China’s auto industry will face cyclical and policy challenges in 2026, but argues that these “could prove territorially and technologically beneficial.” In that context, the analyst names XPeng (XPEV), Geely and SAIC as the firm’s preferred China Auto stocks in the first half of 2026, citing their resilient domestic and growing overseas sales as well as re-rating opportunities from a non-auto “second act.”