XPeng Is Making a Bold Bet on Robotaxis That Investors Cannot Afford to Ignore

XPeng (XPEV) is no longer just an electric vehicle maker. The Chinese automaker has started mass-producing robotaxis in Guangzhou using its own in-house Turing artificial intelligence chips, and this is the clearest signal yet that the company is evolving into a full-stack physical AI company. For long-term investors, it is a story worth taking seriously right now.

What XPeng Just Announced

XPeng recently announced it is beginning mass production of robotaxis in Guangzhou. The pivot is a meaningful step beyond road testing and toward a real commercial rollout. The company still targets pilot passenger operations in the second half of 2026.

The move fits squarely within the vision XPeng CEO He Xiaopeng laid out in January, when he said the company would begin street trials of robotaxis and mass produce humanoid robots in 2026 as part of its broader ambition to lead in autonomy and robotics.

XPeng formed a dedicated robotaxi unit earlier this year to manage product development, research and testing, and operations. Critically, XPeng is building more of this stack in-house than most rivals, a strategic choice that could pay off handsomely at scale.

XPeng Posted a Strong End to 2025

The robotaxi announcement lands at a time when XPeng is already posting strong numbers. 

• In its Q4 earnings call, the company reported total revenues of $3.27 billion, up 38.2% year-over-year.
• It also recorded its first-ever quarterly profit, posting a net profit of $55.87 million.
• Full-year gross margin reached 18.9%, up 4.6 percentage points from a year earlier.
• Annual deliveries came in at 429,445 vehicles, more than double what it delivered the prior year.
• Cash on hand stood at $7 billion, giving the company a strong runway to fund its "unwavering investment" in physical AI, according to Dr. Hongdi Brian Gu, vice chairman and co-president of XPeng.

The VLA 2.0 system at the heart of the robotaxi program is already showing promising real-world results. In March 2026, XPeng began rolling it out to users, and CEO Xiaopeng He noted that daily test drives more than doubled month over month. 

He believes the system represents a generational leap in autonomous driving performance compared to rivals.

XPeng's Robotaxi Road Map

XPeng's GX Robotaxi has already received official road testing approval in Guangzhou and is conducting ongoing Level 4 corporate road tests. The company plans to launch pilot passenger operations in the second half of this year.

By early 2027, XPeng hopes to run driverless operations without a safety driver on board. Overseas road testing of the VLA 2.0 is also planned for this year, with full international rollout expected by late 2026 or early 2027. 

The Turing AI chip powering these vehicles has already shipped over 200,000 units since it entered mass production in Q3 last year. XPeng targets nearly 1 million shipments of the Turing chip in 2026, and Volkswagen is already a paying customer for both the chip and the VLA 2.0 technology.

What's Next for XPeng Stock Investors?

XPeng is investing $1.03 billion in physical AI-related research and development in 2026. It is planning four new vehicle models for global markets, targeting overseas deliveries to double year-over-year, and aiming for overseas revenue to exceed 20% of total sales.

Moreover, XPeng's humanoid robot, IRON, is targeted for mass production by the end of 2026, with an initial monthly production goal of over 1,000 units. He believes the market for physical AI agents will surpass that of the entire automotive industry within a decade.

Alternatively, regulatory timelines for driverless operations in China and globally remain uncertain. Robotaxi economics are still unproven at scale anywhere in the world. And competition from Baidu (BIDU), Pony.ai @ (PONY), and global players is intense.

Out of the 19 analysts covering XPEV stock, 10 recommend “Strong Buy,” two recommend “Moderate Buy,” five recommend “Hold,” and two recommend “Strong Sell.” The average XPeng stock price target is $23.54, above the current price of $15. 

For investors looking over the next three to five years, XPeng appears to be at a genuine inflection point. It posted its first quarterly profit, controls its own chips, has AI software gaining traction with real users, and is now physically building the robotaxis that could redefine its business.