XPeng Plans a $13.8 Billion Humanoid Robot Investment as the Robotic Race Shapes Up
Chinese EV manufacturer XPeng is considering making a significant investment in humanoid robots as it views its project as a long-term venture. XPeng’s humanoid robot investment could be as high as $13.8 billion, Reuters reported.
Industry Potential
XPeng CEO He Xiaopeng reportedly revealed the investment plan during a parliamentary secession. On March 10, Chinese state media reported that while Xiaopeng acknowledged that while his company’s current investment remains conservative, XPeng is ready to beef it up substantially.
“XPeng has been working in the humanoid robot industry for five years, may continue to be in the business for another 20 years, invest additional 50 billion yuan and even 100 billion yuan,” Xiaopeng said.
The CEO did not disclose XPeng’s current investment in robots. The EV manufacturer entered the humanoid robots market back in 2020. The company launched the humanoid iron to rival Tesla’s Optimus bot in November the same year.
Earlier this month, XPeng reported growth in its EV deliveries for the month of February 2025 as some Chinese EV companies struggled to sell. The company shipped over 30,000 cars for the fourth straight as its mass-market brand gave it an edge in the now competitive market.
XPeng is one of the auto manufacturers that have ventured into humanoids. Chinese lawmakers have identified robotics as one of the industries that the country wants to achieve tech breakthroughs.
Growing Interest
Interest in humanoid robots has been growing among tech and automotive companies. XPeng’s participation in the humanoid robot market marks a significant step towards robotic innovation and development of emerging technologies at a lower cost. Ideally, having more players in the industry will most likely lead to a more efficient market and competitive product pricing.
But XPeng will have to invest heavily in research, development, and real-time testing of its robots in consumer and industrial environments. Another Chinese EV manufacturer that is eying robotics is Leapmotor. The company has already set up a robotics team. The CEO of the Stellantis NV supported company Zhu Jiangming said the company is currently at the pre-research stage.
The robots are to be used in industry settings to replace humans. Some areas where they would be useful include factory assemblies where they could help to improve work efficiency. According to Jiangming, auto manufacturers could invest between 1 and 2 billion yuan each year in developing applicable scenarios for humanoid robot deployment.
Robotics Race
As the global robotics race shapes up, the future of humanoid robots remains bright. EV manufacturers across the board are already planning for widespread robot deployment in their manufacturing plants. Early this year, Tesla CEO Elon Musk said his company is planning to make several thousands of Tesla Optimus humanoid robots for deployment in its factory. Last year, Musk had alluded to these plans on social media.
“Tesla will have genuinely useful humanoid robots in low production for Tesla internal use next year and, hopefully, high production for other companies in 2026,” Musk posted on X in July 2024.
According to Musk, the internal deployment will inform the company’s next version of Optimus that will be launched in 2026. Much also said the new version will most likely be sold to Tesla rivals. This move points to emerging competition in the humanoid robot market.
American big techs Apple and Meta are also planning to enter the humanoid robot market. Reports indicate that Apple is looking into non-humanoid and humanoid robots to support the smart home ecosystem.
The iPhone maker will be focusing more on sensing technologies and user interaction, which indicates an emerging trend where big techs will integrate robotics into tech products. Meta has shown interest in AI-powered humanoid robots. The tech giant plans to invest heavily in this field.
