CICC maintained its Outperform rating on Xpeng and reiterated its HK$215 price target on the company's Hong Kong-traded shares.

Xpeng Motors' deliveries crossed the 10,000-unit threshold for the first time in September, and top Chinese investment bank CICC sees that as another reason to be bullish on the electric vehicle maker.

In a research note released Friday, CICC said Xpeng exceeded market expectations by delivering 10,412 units in September.

The company delivered 25,666 units in the third quarter, also exceeding its upper guidance, CICC said, adding that the strong performance reflects the right strategy for Xpeng's smart products.

Xpeng officially launched the new sedan P5 in the middle of last month, and CICC noted that investors are now more concerned about internal competition between the P5 and P7.

However, with the P5's October delivery and production capacity gradually increased, it can continue to tap incremental users to drive its fourth-quarter delivery to a new record high and achieve the company's previously planned single-month 15,000 deliveries, CICC said.

CICC noted that the P7 now accounts for 76.9 percent of sales, and the model's sales and share are expected to increase again, driving revenue growth.

The increase in P7 sales could also offset the negative impact of raw material price increases and work stoppages due to the G3i capacity switch, driving gross margins upward, CICC said.

CICC maintained its Outperform rating on Xpeng and reiterated its HK$215 price target on the company's Hong Kong-traded shares.

Xpeng closed up 5.2 percent to HK$149.80 in Hong Kong on Friday, up more than 11 percent in the past three trading days, with a market capitalization of HK$256.38 billion.

Xpeng delivered 10,412 vehicles in September, the first time in its history that it exceeded the 10,000-unit threshold.

It was the fifth consecutive month of record monthly deliveries for Xpeng, up 199 percent from a year ago and 44 percent from August, according to data released by the company Friday.

In the third quarter, Xpeng's deliveries reached 25,666 units, up 48 percent from the second quarter, with single-quarter deliveries approaching those of all of last year.