10 Best Car Stocks to Buy in 2026

8. XPeng Inc. (NYSE:XPEV)

XPeng Inc. (NYSE:XPEV) is one of the best car stocks to buy in 2026. On March 23, Macquarie downgraded its rating on XPeng Inc. (NYSE:XPEV) from Outperform to Neutral and reduced its price target from $24 to $19 on the stock.

Macquarie pointed to uncertainty around XPeng Inc.’s (NYSE:XPEV) volume growth for this year. Analyst Eugene Hsiao said that the stock usually performs well when the company launches a clear hit product like the P7+ or Mona M03. However, the research firm believes that it is still too early to know if the upcoming GX or new Mona SUV series will have the same effect. Macquarie also cut its fiscal 2026 unit volume estimate by 7% for XPeng Inc. (NYSE:XPEV), citing weak early demand.

Earlier, on March 20, US Tiger Securities also downgraded its rating on XPeng Inc. (NYSE:XPEV) from Buy to Hold and set a price target of $20 on the stock.

The research firm pointed to the company’s strong results in Q4 2025. XPeng Inc. (NYSE:XPEV) reported total revenue of RMB22.25 billion, up 38% year-over-year. The company also reported that gross margin improved to 21.3%, an increase of 6.9 percentage points year-over-year.

XPeng Inc. (NYSE:XPEV) is a leading Chinese company that designs, develops, manufactures, and markets smart electric vehicles (EVs) for technology-savvy middle-class consumers.