Investing.com -- Xpeng shares surged as much as 18%, reaching their highest level in more than three years, driven by optimism over the Chinese automaker’s push into advanced robotics and autonomous technologies.
The rally followed the company’s recent AI Day event, where it showcased its humanoid robot, Iron, and unveiled progress on its robotaxi program.
Xpeng’s Hong Kong-listed shares closed 17.94% higher at 108.5 Hong Kong dollars (HKD), their highest closing price since July 2022.
The company’s U.S.-listed shares also climbed over 5% in premarket trading.
The event highlighted Xpeng’s ambition to position itself as more than a traditional electric vehicle maker, leveraging shared AI systems across mobility and robotics. The humanoid, designed with a human-like appearance and gait, is expected to enter large-scale production by 2026.
Analysts say the company’s early focus on vehicle autonomy and in-house AI computing gives it an edge in developing “physical AI” capabilities that can serve both cars and robots.
Morgan Stanley reiterated its Overweight rating on Xpeng, lifting its price targets to $34 from $30, and from 119 HKD to 131 HKD. It also hiked its bull-case valuation by 6% to $54 and 211 HKD.
Analyst Tim Hsiao said Xpeng’s new humanoid and robotaxi initiatives are likely to “unlock potential valuation upside as they enter mass rollout in 2026.”
He also noted strong synergy between Xpeng’s autonomous driving and robotics R&D, with about 70% of the engineering effort shared across divisions. This overlap in chips, sensors, and domain controllers could provide a cost advantage over standalone players.
“We anticipate a strong improvement in sentiment from mid-2026 when XPeng starts to mass produce its physical AI initiatives,” Hsiao wrote.
The analyst also pointed to Xpeng’s partnerships with Volkswagen and Amap, saying that “collaboration is the new competition." He expects additional alliances over the next 12 months as the company moves toward mass rollout in 2026.
Morgan Stanley also raised their 2026–27 net profit forecasts by 5% and 14%, reflecting stronger vehicle sales expectations and new model launches such as the VLA 2.0 in early 2026.
