XPeng Launches Humanoid Robot Prototype as Stock Takes a Hit

XPeng Inc. has introduced its first humanoid robot prototype, the ET1, but the announcement was overshadowed by a decline in the company’s stock in Hong Kong. Shares fell after an analyst at Macquarie lowered its price target for XPeng from $32 to $26, citing expected challenges ahead in the electric vehicle (EV) market.

XPeng’s CEO, He Xiaopeng, announced the milestone on social media, stating that the first unit of the ET1 robot has successfully rolled off the production line. He emphasized the significance of this development, which aims to pave the way for mass production of advanced humanoid robots by the end of 2026. Despite the positive news regarding the robot, XPeng’s shares dropped on the same day.

Technological Advancements in Humanoid Robotics

The ET1 humanoid robot is designed to meet automotive-grade standards, a critical aspect of XPeng’s broader ambition to expand beyond electric vehicles into artificial intelligence and robotics. At the company’s AI Day event in November 2025, XPeng revealed its next-generation Iron humanoid robot, which gained attention for its realistic movements and human-like posture.

The Iron robot features an innovative humanoid spine, bionic muscles, and hands with 22 degrees of freedom. It is powered by XPeng’s second-generation Vision-Language-Action (VLA) model, alongside three proprietary Turing AI chips, which collectively deliver 2,250 TOPS of computing power. The robot’s design incorporates all-solid-state batteries for improved safety and energy efficiency.

Initial applications for the ET1 and Iron robots will focus on commercial services, reflecting XPeng’s strategic direction in the competitive robotics space.

Market Reaction and Analyst Insights

Despite the technological achievements, XPeng’s stock faced pressure following Macquarie’s price target revision. The firm maintained an ‘Outperform’ rating but noted that 2026 is expected to be a transition year for XPeng as it expands its product lineup with up to four new models. Analysts highlighted the impact of slowing demand in China’s EV market on the company’s performance.

Macquarie also pointed out that the net income breakeven could fluctuate depending on revenue structures tied to partnerships with other automakers, such as Volkswagen. This uncertainty contributed to the bearish sentiment among investors, despite the positive developments in XPeng’s robotics initiatives.

XPeng’s advancements in humanoid technology have caught the attention of the broader market, especially as competing companies like Tesla continue to make strides in the same field. Elon Musk, CEO of Tesla, has described the company’s Optimus humanoid robot as potentially its “biggest product of all time,” hinting at vast future applications.

In response to Musk’s claims, He Xiaopeng noted on social media that the Iron robot’s capabilities should not be underestimated, stating, “the robot that mastered the catwalk is built by a Chinese startup.” This exchange highlights the competitive spirit in the burgeoning field of robotics.

Investor sentiment on platforms like Stocktwits reflected caution regarding XPeng, with many users expressing a bearish outlook amid low message volume. Nevertheless, XPeng’s U.S.-listed stock has shown resilience, rising 49% over the past year.

As XPeng moves forward with its robotics ambitions, the balance between technological innovation and market dynamics will be crucial to its success in both the EV and robotics sectors.