XPeng Robotics will use its funding to enhance its research and development on robotic hardware and software and improve product competitiveness, among others.
Xpeng to Utilize $100M Funding for its Research and Development
The Chinese electric carmaker XPeng's affiliate company, XPeng Robotics, announced on Tuesday (July 12) that it had raised $100 million to bring home robotics to market within the next two years.
IDG Capital, a well-known venture capital firm, led the financing, with XPeng also taking part.
According to a press release from XPeng Robotics, the funding will be used to increase its research and development spending on robotic hardware and software, hire staff, hasten the development of new products, and increase technology and product competitiveness. The business anticipates the first robots to enter homes in the following two years.
As its first project, XPeng Robotics debuted a four-legged "robot unicorn" in September last year that young children could ride. The quadruped will use Xpeng's expertise in autonomous driving and other AI tasks, as mentioned by SCMP, to traverse various terrain types, identify objects, and provide "emotional interaction." The price or availability of Xpeng's robotic unicorn has not been disclosed yet.
While expanding the sales of electric vehicles in China and, more recently, abroad remains XPeng's top priority, the company has been keeping an eye on the future through spin-off entities.
Its CEO, He Xiaopeng, sees passenger drones and robotics as expanding the business's focus on transportation.
It is not only XPeng that is expanding into the robotics industry. Optimus's humanoid robot is being developed by its American rival Tesla, and the company claims it could enter production in 2023.
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XPeng's CEO Contends Smart EV Firm Should Produce 400,000 Units Annually
He Xiaopeng, chairman and CEO of XPeng Inc., stated on July 7 at the 14th China Auto Bluebook Forum (CABF 2022) that the fundamental annual output threshold for a smart electric vehicle startup should be increased to 400,000 units.
The point of view was expressed in contrast to the 10,000-unit production volume threshold that China's auto industry accepts as the industry standard.
When reflecting on the company's development history, Mr. He claimed that XPeng had to make some difficult choices, such as forgoing the development of REEVs (range-extended electric vehicles) in favor of an all-electric one.
In the transition from conventional oil-fueled cars to new energy vehicles, the REEV is unavoidably going to exist, and there is a sizable market for them. After 2023 or 2024, the demand for REEV models could begin to decline, and some players may choose to forego the REEV route in favor of a different technical path, he added.
In June 2022, XPeng reported monthly deliveries of 15,295 smart EVs, a 133 percent increase from the previous year and a 51 percent increase from May 2022. For the second quarter of 2022, it delivered 34,422 vehicles, placing it number one among developing auto brands in China for the fourth quarter.
The Chinese corporation adds that deliveries picked up speed after starting double-shift production at its Zhaoqing factory in mid-May. But even without that, XPeng is a unique illustration of a business expanding swiftly despite recent supply shortages and lockdowns.
Pre-orders for XPeng's new, premium G9 SUV, which is scheduled to be on sale in September, will start to be accepted in August.
