Citi raised price target on Xpeng (XPEV.US) from $34.70 to $57.71, and maintains "Buy" rating. The bank also raised Li Auto (LI.US) rating from "Neutral" to "Buy" with a price target raised to $45.60 from $27.10.

Analyst Jeff Chung said sales of new energy vehicles in China will grow more than 100% year-on-year by the first quarter of 2021.

After the battery supply is more abundant, Xpeng P7 will sell more than 3,000 units in January next year, Chung said.

In addition, the analyst believes that Xpeng's software business is valued at $7.65 per share.

Notably, Chung said that in a bull market scenario, his valuation model shows Xpeng shares could potentially reach $67.79 per share.

Chung also raised Li Auto (LI.US) rating from "neutral" to "buy", the target price rose from $ 27.10 to $ 45.60. The analysts expect Li Auto to be valued at $ 45.60 per share by January next year.

The analysts expect that Li Auto shipments will reach 6,000 units in January next year.

Chung said, in a bull market scenario, his valuation model shows that Li Auto shares may reach $111.38.