Like the rest of China’s auto industry, XPeng, one of the country’s largest EV manufacturers, has struggled with falling sales prices amid stiff domestic competition. In response, it is seeking to boost earnings by expanding into AI systems in hardware such as robots and cars, known as physical AI: Xpeng recorded its first ever quarterly profit in the fourth quarter of 2025, although 86 percent of its revenue over those three months was still from vehicle sales. One of its AI driving technol
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