XPeng (NYSE:XPEV) shares rose 4% on Wednesday after a report indicated the Chinese electric vehicle manufacturer is preparing to significantly expand production of its humanoid robot ahead of an international launch.
Robot production expected to accelerate
According to a Wall Street Journal report citing people familiar with the matter, XPeng plans to increase monthly production capacity of its IRON humanoid robot to more than 1,000 units by the end of this year.
The company is reportedly targeting a global rollout of the robot in 2027 as it broadens its presence beyond electric vehicles.
Retail deployment planned before global expansion
The report said XPeng intends to introduce IRON as a shopping assistant in its own retail stores across China during the first quarter of 2027.
Following the domestic launch, the company is expected to expand the robot’s deployment to its international retail locations later in the year.
AI strategy expands beyond electric vehicles
The planned production increase reflects XPeng’s ambition to diversify its business by combining artificial intelligence, robotics and smart mobility technologies.
The company is seeking to evolve into a broader physical AI business, following a strategy similar to that pursued by Tesla and other technology-focused automotive manufacturers.
By increasing manufacturing capacity for its humanoid robots, XPeng aims to establish a presence in emerging AI-driven robotics markets while continuing to grow its core electric vehicle operations.