Credit Suisse raised its price target on Xpeng Motors in a research note issued Monday, citing the electric car maker's strong July deliveries.

The bank raised its price target on Xpeng's US stock to $72 from $70, maintaining its Outperform rating.

Xpeng closed up 6.38 percent to $40.53 on Friday, and the target price implies about 78 percent upside.

Credit Suisse said Xpeng delivered a record 8,040 units in July, up 228 percent year-over-year and up 22 percent from the previous month, beating market expectations.

The bank said Xpeng's SUV model G3i, unveiled last month, will be produced at the company's own plant, which is expected to help boost profit margins.

The government of Zhaoqing, where Xpeng's plant in Guangdong is located, has started to provide subsidies for locally produced cars, which is expected to boost sales, the note said.

Xpeng's flagship sedan, the P7, delivered 6,054 units in July, its highest monthly delivery record. Its compact SUV, the G3, delivered 1,986 units in July.

As of July 31, the company's total deliveries for the year reached 38,778 units, up 388 percent year-over-year.

The G3i, which the company launched last month, is priced at RMB 150,000 ($23,202) – RMB 186,000, will be produced at Xpeng's own Zhaoqing plant, with deliveries scheduled to begin in September.

The company plans to have the P5 officially launched in the third quarter of 2021, with deliveries expected in the fourth quarter of 2021.

Xpeng rose 4.5 percent to $42.35 in US pre-market trading Monday.