EV maker Xpeng set to challenge Tesla in embodied AI after robotics unit raises US$900m

AdvertisementElectric & new energy vehiclesBusinessChina EVsEV maker Xpeng set to challenge Tesla in embodied AI after robotics unit raises US$900mBackers including Alibaba, Tencent and IDG put up a combined US$600 million while Xpeng itself pledges US$200 million 2-MIN READ2-MINDaniel Renin ShanghaiPublished: 9:29pm, 24 Aug 2026Chinese electric vehicle (EV) maker Xpeng has secured US$900 billion in funding from high-profile investors including Alibaba Group Holding and IDG Capital to spur its robotics unit, despite a widening second-quarter loss.Dogotix, a subsidiary of Xpeng, raised US$900 million in the latest round of financing, which valued it at US$6.3 billion, Xpeng said in a statement on Monday, adding that the fundraising marked the biggest single private-equity deal involving a Chinese robotics maker. The fresh capital would give Xpeng a shot in the arm as it joins the fray against Tesla to build and sell humanoid robots to tap global investor enthusiasm in embodied artificial intelligence. “I believe Xpeng will not only build one of China’s most valuable humanoid robotics companies, but also become a global leader in physical AI, spearheading the large-scale adoption and commercialisation of advanced general-purpose humanoid robots and autonomous driving technologies in China and overseas,” He Xiaopeng, co-founder and CEO of the company, said in the statement. On Monday, Xpeng said its net loss in the second quarter ending June widened 179 per cent from a year ago to 1.34 billion yuan (US$199.4 million) amid a 32.1 per cent jump in research and development costs. Revenue rose 8 per cent to 19.7 billion yuan year on year. Xpeng CEO He Xiaopeng walks past his firm’s new SUV GX six-seater on the opening day of the Beijing Auto Show on April 24, 2026. Photo: AFPBackers including Alibaba, owner of the South China Morning Post, Tencent Holdings, IDG and Gaorong Ventures agreed to invest a combined US$600 million into Dogotix, while Xpeng itself pledged US$200 million, according to Xpeng. AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x