Xpeng Reports Record Revenue, Advances AI Mobility and Robotics Goals

Chinese electric vehicle (EV) maker Xpeng reported record quarterly revenue and significantly narrowed losses in the third quarter. The Guangzhou-based organisation's net loss reduced by nearly 80% to US$53.6 million from 1.81 billion yuan a year earlier.

Credit: XPENG

Revenue surged 101.8% year on year to 20.38 billion yuan, driven by record deliveries. The company delivered 116,007 units, an increase of nearly 150% from the previous year.

Credit: XPENG

Xpeng's gross margin improved to 20.1% from 15.3% a year earlier. Its vehicle margin also rose to 13.1% from 8.6%.

Credit: XPENG

The company is broadening its ambitions into advanced mobility and robotics. It debuted its humanoid robot, IRON, earlier this month, with plans for mass production by late next year.

Xpeng also expects to introduce new robotaxi models in 2026 for commercial ride-hailing operations. He Xiaopeng, chairman and chief executive officer of Xpeng, stated, "We are in the early stages of rapid expansion in terms of sales volume and market share, with robotaxis and humanoid robots advancing rapidly towards mass production."

Xiaopeng believes Xpeng will evolve into a global embodied artificial intelligence company. He added, "Centred around physical AI applications, we are developing a comprehensive portfolio of technologies and products, alongside a thriving business ecosystem, thereby creating greater value for customers and shareholders worldwide."

Shares of Xpeng fell in Hong Kong despite a bullish note from JPMorgan, which reaffirmed its overweight rating. JPMorgan raised its price target to HKD 195, implying an 85% upside under its bear-case scenario.

Xpeng shares dropped as much as 3.4% before closing 2.7% lower at HKD 96. The stock has risen more than 100% this year.

In a report, JPMorgan stated that Xpeng's next stage of growth in 2026-27 would likely be driven by its long-term artificial intelligence ambitions. These include robotaxis, humanoid robots, and flying cars, all powered by in-house AI capabilities.

These capabilities feature self-designed chips and vision-language-action models. The investment bank expects the market to start pricing in these initiatives from the second half of 2026, when deployment visibility improves.

The equity story shifted significantly following Xpeng's recent Technology Day, Lai noted. Xpeng announced plans to deliver L4-capable vehicles next year and target mass production of humanoid robots by the end of 2026.

JPMorgan estimates that Xpeng's robotaxi service could add between US$5.7 billion and US$18.9 billion in valuation, depending on 2035 penetration. Its humanoid robot business could contribute up to US$24 billion in 2027.

The report cautioned that revenue contributions from these businesses may not materialise until late 2026 or 2027. Xpeng will need to absorb higher research and development, and capital expenditure for the next two years. JPMorgan expects Xpeng to achieve profitability in 2028.

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• Xpeng reported record quarterly revenue and significantly narrowed losses in the third quarter.

• The company delivered 116,007 units, driving a 101.8% year-on-year revenue surge.

• Xpeng plans to mass produce its IRON humanoid robot by late next year and introduce robotaxi models in 2026.

Source: SCMP