XPENG (NYSE:XPEV) said its robotics business raised more than $900 million in an initial financing round at a post-money valuation exceeding $6.2 billion, as the electric-vehicle maker outlined plans to begin scaled production of its Iron humanoid robot by the end of 2026.
Chief Executive Officer He Xiaopeng said the financing was led by IDG Capital, with Gaorong Ventures participating and Tencent and Alibaba serving as strategic investors. He said the funding would support development and mass production of Iron, while adding resources for the company’s robotics ecosystem and real-world applications.
Iron production and commercialization plans
XPeng said its Iron robot incorporates a full in-house technology stack spanning the body, AI “brain,” motion-control systems, data and infrastructure. The company said Iron has 76 degrees of freedom across its body and 21 degrees of freedom in each hand. It is powered by three Turing AI chips providing up to 2,250 TOPS of computing power, according to management.
The company plans to enter scaled production of Iron by the end of 2026. Initial commercial deployments are expected at XPeng stores and campuses, followed by use in the company’s own commercial settings and selected external applications in the first half of 2027.
XPeng plans to formally launch Iron in 2027 for external retail and service-sector customers in China and overseas. He said monthly production capacity could rise to several thousand units next year based on market demand, though management did not provide a full-year delivery target.
In response to questions about economics, He said more than 85% of Iron’s supply-chain partners overlap with XPeng’s automotive supply chain. He said Chinese robots are generally priced at about 2.5 to three times their bill of materials, and XPeng expects Iron hardware gross margins to exceed those of its vehicle business. Management also expects potential recurring revenue from AI-model upgrades, software and related services.
Vice Chairman and President Brian Gu said it was too early to provide a profitability timeline or volume guidance for the robotics business. However, he said the company expects humanoid robots to have greater gross-profit potential than automobiles and potentially require lower investment and capital expenditures once production ramps up.
Gu added that the robotics unit remains consolidated with XPeng’s operations. While the company has an 18-month period to work toward a separation under the announced arrangement, management said it remains focused on operational synergies between the vehicle and robotics businesses.
Second-quarter financial results
For the second quarter of 2026, XPeng reported total revenue of RMB19.74 billion, up 8% from a year earlier and 51.5% sequentially. Vehicle sales revenue rose 1% year over year and 55% from the first quarter to RMB17.05 billion, driven primarily by higher deliveries.
Services and other revenue increased 93.9% from a year earlier to RMB2.7 billion. Vice President of Finance and Accounting James Wu attributed the increase mainly to technical research and development services provided to Volkswagen Group after certain project milestones were achieved, as well as parts and accessories sales.
- Second-quarter vehicle deliveries were 103,295, up 65% sequentially.
- Gross margin was 20.7%, compared with 17.3% a year earlier and 20.6% in the first quarter.
- Vehicle margin was 12.1%, unchanged from the first quarter and down from 14.3% a year earlier, which Wu attributed primarily to a production-generation transition.
- Research and development expenses rose 32.1% year over year to RMB2.91 billion, reflecting investment in vehicle models and AI-related technologies.
- Net loss was RMB1.34 billion, compared with a RMB480 million loss a year earlier and a RMB1.7 billion loss in the first quarter.
- Cash stood at RMB40.48 billion as of June 30.
Vehicle launches, international growth and guidance
He said XPeng’s GX flagship SUV delivered more than 7,000 units in China during July, placing it among the top three new-energy SUV models priced above RMB300,000, according to the company. He also said orders for the MONA L03 SUV set a record for an XPeng model, while new noncancelable orders in July and August rose more than 50% sequentially to a record high.
The company said extreme weather and supply-chain disruptions affected its production ramp, but it has begun two-shift production for the MONA L03. XPeng plans to launch and begin deliveries of its G9L five-seat SUV in September and introduce the MONA L05 in China during the fourth quarter. Management is targeting monthly vehicle deliveries above 60,000 units in the fourth quarter.
Overseas deliveries exceeded 20,000 vehicles in the second quarter, rising 81% year over year, XPeng said. International operations represented more than 25% of first-half revenue, with average export selling prices above €40,000. The company expects overseas deliveries of the MONA L03 to begin in the fourth quarter and said this could lift quarterly overseas deliveries above 40,000 units.
For the third quarter, XPeng forecast deliveries of 115,000 to 121,000 vehicles, representing sequential growth of 11.3% to 17.1%. It projected revenue of RMB21.7 billion to RMB23.4 billion, up 9.9% to 18.5% from the second quarter.
ADAS and Robotaxi ambitions
XPeng also said it plans to roll out version 6.3.0 of its VLA 2.0 driver-assistance system beginning in late August. The company said the update will increase on-device model parameters by 3.5 times, improve perception sensitivity by 300%, and add longer-horizon reasoning capabilities.
Management said it aims to obtain European regulatory approval for VLA 2.0 in the first half of 2027. XPeng said its VLA-powered Robotaxi fleet has completed more than 2,000 internal test orders in Guangzhou, and the company aims to begin passenger operations without an in-car safety operator next year.
About XPENG (NYSE:XPEV)
XPENG Inc (NYSE: XPEV) is a China-based developer and manufacturer of smart electric vehicles. The company designs, engineers and sells battery-electric sedans and sport-utility vehicles along with related software and services. Founded in 2014, XPENG positions itself as a technology-driven automaker with a focus on vehicle connectivity, software-defined features and advanced driver assistance systems.
Product offerings center on passenger EVs spanning compact crossovers and midsize sedans, supported by in-house software platforms and over-the-air update capabilities.
