China's auto industry is still expanding output, and supply is relatively fragmented, according to Goldman Sachs' research report. Industry profitability improved, but it may be temporary. Cash flow, working capital and balance sheet conditions deteriorated in 1Q25.Goldman Sachs upgraded XPENG-W (09868.HK) +0.200 (+0.279%) Short selling $356.82M; Ratio 30.386% (XPEV.US) from Neutral to Buy, with target prices for its H-shares/ US stock being $94/ US$24, as it saw a series of measures, including supply chain reorganization, which will help reshape the group's competitiveness in terms of its product and cost structure, leading to higher visibility for sustained growth in sales volume and profit margin improvement. Related NewsCMSI Sees Huge Hit Potential for XIAOMI-W (01810.HK) YU7, Expects Sales to Double in 2026Moreover, the broker upgraded NIO-SW (09866.HK) +0.550 (+2.111%) Short selling $40.45M; Ratio 34.859% (NIO.US) from Sell to Neutral, believing that the management's cost reduction measures will improve the company's profitability by 4-10% over the next 3 years.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-19 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)