Tesla Inc.’s Chinese rival XPeng Motors (NYSE:XPEV) is contemplating a significant investment in humanoid robots, potentially reaching up to 100 billion yuan ($13.80 billion).
What Happened: According to Chinese state media, XPeng CEO He Xiaopeng revealed during the annual parliamentary session that while the company’s current investment is conservative, it is prepared to increase its financial commitment substantially.
According to Reuters, the Securities Times reported He as saying that XPeng has been engaged in the humanoid robot sector for five years and plans to continue for another 20 years, potentially investing an additional 50 to 100 billion yuan.
The Guangzhou-based electric vehicle manufacturer entered the humanoid robot market in 2020, unveiling its humanoid Iron in November to compete with Tesla’s Optimus bot.
XPeng is part of a growing number of automakers focusing on humanoids, an area that Chinese policymakers are keen to see technological advancements in.
Meanwhile, Stellantis NV-backed (NYSE:STLA) Leapmotor has initiated a robot team, currently in the pre-research phase, as reported by CEO Zhu Jiangming on Tuesday.
These robots are intended for industrial use, such as factory assemblies, to enhance work efficiency. He suggested that automakers might invest 1-2 billion yuan annually in applicable scenarios for deploying humanoid robots, according to Economic View on Tuesday.
Why It Matters: The interest in humanoid robots is gaining momentum across the tech and automotive industries.
Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk recently announced plans to produce thousands of Optimus robots for internal factory use, with future sales to other companies anticipated. This move highlights the growing competition in the humanoid robot market.
Additionally, Apple Inc. (NASDAQ:AAPL) is reportedly exploring both humanoid and non-humanoid robots for its smart home ecosystem, focusing on user interaction and sensing technologies. This indicates a broader trend among tech giants to integrate robotics into their product offerings.
Moreover, Mark Zuckerberg-led Meta Platforms Inc. (NASDAQ:META) is also planning a significant investment in AI-powered humanoid robots, showcasing the increasing interest in this field.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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