Key facts
- Xpeng's robotics division has secured US$900 million in new funding.
- The funding aims to position Xpeng's robotics unit to compete with Tesla in embodied AI.
- Xpeng forecasts its third-quarter revenue will fall short of expectations.
- Intense competition and declining domestic sales are cited as reasons for the revenue forecast.
Chinese electric vehicle manufacturer Xpeng is set to compete with Tesla in the embodied artificial intelligence space following a US$900 million funding round for its robotics unit. The investment signals Xpeng's ambition to expand beyond traditional electric vehicles into advanced robotics and AI.
This strategic move comes at a challenging time for Xpeng in the automotive market. The company has forecast its third-quarter revenue to be below analyst expectations, citing fierce competition within China's electric vehicle sector and a slowdown in domestic sales. The intensifying competition, particularly from domestic rivals and established players like Tesla, has put pressure on Xpeng's core business.