Morgan Stanley's report states that for most major listed electric vehicle companies, their sales trends in the third quarter have exceeded expectations, with an increase in the average selling price combination for companies such as BYD (01211.HK) and Geely (00175.HK). The bank pointed out that NIO may be the only company whose sales and sales performance are below expectations, but the performance of its Onvo L60 in the fourth quarter may be more meaningful, prompting an upgrade from "neutral" to "outperforming the market". The bank expects the industry to deliver a bright performance overall, although most of it has been reflected in stock prices, and due to Geely's recent outstanding performance, it downgraded its rating to "neutral".

The bank lists its new industry preferences, with BYD as the top choice, followed by Xpeng (09868.HK), Zeekr (ZK.US), then NIO and Geely, with Li Auto (02015.HK) last.

Morgan Stanley's investment ratings and target prices for mainland electric vehicle stocks are as follows:

Stock | Investment Rating | Target Price (HKD)

BYD Company Limited (01211.HK) | Outperforming the market | 360 RMB

Geely Auto (00175.HK) | Outperforming the market -> Neutral | 16 RMB

Li Auto Inc - W (02015.HK) | Neutral | 118 RMB

NIO Inc - SW (09866.HK) | Neutral -> Outperforming the market | 65 RMB -> 52 RMB

Xpeng - W (09868.HK) | Outperforming the broader market | 61 yuan -> 50 yuan

Zeekr (ZK.HK) | Outperforming the broader market | $33 -> $31