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Chinese EV maker XPeng Inc. (NYSE:XPEV) stock traded higher Thursday after announcing plans to roll out robotaxi services in 2026 through Alibaba Group Holding Limited's (NYSE:BABA) Amap mapping platform.
The initiative marks a significant step in commercializing XPeng's artificial intelligence technology. At an event at the company's Guangzhou headquarters, Chairman and CEO He Xiaopeng introduced three robotaxi models, a humanoid robot, and two flying cars powered by XPeng's new Vision Language Action (VLA) AI architecture.
He told the South China Morning Post (SCMP) that the upgraded AI trains vehicles to better handle complex driving environments—including narrow city roads—with greater precision and fewer driver interventions.
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He said a VLA-equipped vehicle required only one human intervention during a 49-minute route, compared with Tesla Inc.'s (NASDAQ:TSLA) Full Self-Driving system, which disengaged seven times on a similar route.
Under the agreement, Amap users in mainland China will be able to hail XPeng's robotaxis directly. Amap CEO Guo Ning told SCMP the fleet will feature five-, six-, and seven-seat models powered by four self-developed Turing AI chips.
Each vehicle will incorporate redundant systems across computing, braking, vision, steering, battery, and communications. Prices will start below 200,000 yuan (about $28,000).
He said "pioneer users" will gain early access to VLA-powered driving capabilities by late 2025, while XPeng Ultra edition owners will receive upgrade paths in early 2026. Volkswagen (OTC:VWAPY) is also expected to deploy XPeng's AI model in its new vehicles next year.
XPeng shares have surged more than 84% year-to-date. The automaker delivered 42,013 vehicles in October, up 76% from a year earlier and slightly above September levels, marking the second straight month of more than 40,000 monthly deliveries.
Through the first 10 months of 2025, XPeng shipped 355,209 vehicles, a 190% year-over-year increase.
The company continued expanding outside China, launching in seven new markets in Europe, Asia, and Africa, including Lithuania, Estonia, Morocco, and Qatar.
The company also reported strong adoption of its XPeng Navigation Guided Pilot driver-assistance technology.
Beyond robotaxis, XPeng plans to mass-produce 1,000 Iron humanoid robots in 2026.
The company also intends to begin mass production of its Aridge Land Aircraft Carrier flying car next year, targeting 10,000 units.
The upgraded A868 flying model will include a 500-kilometer range, speeds above 360 km/h, and more than two hours of flight time.
Price Action: XPEV stock was trading higher by 7.71% to $23.47 premarket at last check Thursday. BABA was up 2.76%.
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