China's Xpeng posts record revenue as robotaxi and humanoid ambitions take shape

Core Insights - Xpeng, a leading Chinese electric vehicle maker, reported record quarterly revenue and significantly reduced losses in Q3, despite a decline in its Hong Kong-listed shares following a positive outlook from JPMorgan [1][7] Financial Performance - The company's revenue surged by 101.8% year-on-year to 20.38 billion yuan, driven by record deliveries of 116,007 units, which is an increase of nearly 150% from the previous year [2] - Xpeng's net loss narrowed by nearly 80% to 380.9 million yuan (US$53.6 million) in Q3, compared to a loss of 1.81 billion yuan a year earlier [1] - Gross margin improved to 20.1% from 15.3% a year earlier, while vehicle margin rose to 13.1% from 8.6% [2] Strategic Developments - Xpeng is expanding into advanced mobility and robotics, having recently introduced its humanoid robot, IRON, with plans for mass production by late next year [4] - The company is also expected to launch new robotaxi models in 2026 for commercial ride-hailing operations [4] - The CEO, He Xiaopeng, stated that Xpeng is in the early stages of rapid expansion in sales volume and market share, with advancements in robotaxis and humanoid robots [5] Market Outlook - Despite a bullish note from JPMorgan, which reaffirmed an overweight rating and raised the price target to HK$195, Xpeng's shares fell by 2.7% to HK$96 [7] - JPMorgan indicated that Xpeng's growth in 2026-27 would likely be driven by its long-term AI ambitions, including robotaxis, humanoid robots, and flying cars, all supported by in-house AI capabilities [8]