Xpeng was founded as an electric vehicle, or EV company, but is now morphing into a full stack technology mobility company, meaning it designs and manufactures much of its hardware and software in-house. This includes cars, autonomous driving, and AI capabilities, all of which are on the cutting edge.
And the best part is, at the current $25B valuation, you are literally paying for its core EV business, and getting its 4 other potential moonshot businesses — which are AI Chips, Flying Cars, Robots, and Robocar — for nothing or next to nothing.
1. EV CARS
First off, its core EV car business. They have an exciting pipeline of new launches planned till 2027, with a strong global presence in more than 50 countries as of mid-November 2025, and further expansion to come.
Their first Extended Range EV, the X9 MPV, debuted on 6 November, an exciting development as the EREV market is a huge market for at least the next decade.
They also plan to rollout high level L3 autonomous driving with their industry-leading 2nd gen VLA model in China by 1Q2026, which will cement their strong position in the global autonomous driving race.
And lastly, their Volkswagen partnership will show tangible results in 2026 with the launch of jointly developed cars, further providing Xpeng with a strong and recurring income stream. Further partnerships are also likely including a possible collab with Hyundai for Xpeng’s autonomous driving software.
2. AI CHIPS
Xpeng has created the Turing AI chip specially customized for mobility vehicles such as EV cars, robots, and flying cars.
The Turing Chip is being used in all Xpeng products, and has the future potential to jolt the auto and mobility industry, which is something to watch out for.
3. FLYING CARS
ARIDGE, formely AEROHT, is Xpeng’s flying car subsidiary. Mass production of their Land Aircraft Carrier flying car (consisting of a Modular Van and a Flying eVTOL Module (Stored inside & charged in the van)) has started on 3 November 2025, which is the world’s first mass produced flying car, and is scheduled for mass deliveries in 2H2026.
ARIDGE also debuted its high-speed long-range flying car Tilt Rotor Flying Car (A868) with a range >500 km, top speed >360 km/h, designed for business travel. This flying car is currently in its flight testing stage with an estimated launch in 2027, and is another exciting prospect to look out for.
4. ROBOTS
Xpeng’s 2nd gen IRON robot debuted on AI Day to much fanfare and amazement. With groundbreaking features such as a human-like catwalk, humanoid spine, bionic muscles, and flexible skin, IRON could turn out to be the Deepseek moment for the robot industry.
CEO Xiaopeng has targeted mass production of IRON robots in 2026, another first in China and possibly the world. Commercialization is also expected to start in 2026, with rapid ramp up and expansion of use cases in the years ahead.
5. ROBOCARS
Xpeng’s robocars and robotaxis will be based off Xpeng’s existing car models, saving costs and time. With mass production also scheduled for 2026, another first in China and possibly the world, Xpeng’s robocars are poised to shake up the entire industry and the opportunities are enormous.
Needless to say, robocars and robotaxis, with L5 autonomous driving, are the holy grail of smart cars, and the opportunities of a first-mover, mass-produced robocar are enormous.
SUMMARY
And here I end with my summary chart.
Xpeng 5 Key Businesses (Updated 12 Nov 2025)
For peer comparison, Blue refer to US companies, while Red are Chinese companies. Notice that US companies often command a hefty premium over Chinese ones, which consensus estimates put between 3x to 10x its Chinese counterpart’s valuation.
Xpeng’s soon to be profitable EV car business serves as a strong foundation and support for its other businesses. This segment is growing at a strong rate, with car deliveries expected to double to 800,000 to 1 million in 2026 from an estimated 440,000 in 2025.
In my opinion, its AI chip business is a wildcard at the moment, and does not have the massive or exciting potential as the others.
The flying car business can see steady but enormous potential over the coming years as better versions and new models flood the market. It might attract a much higher valuation if its rumored IPO comes to fruition, possibly in 2026, or when this division demonstrates profitability and strong sales growth.
Furthermore, as you can see, its US flying car peers are nowhere near mass production yet their valuations are way way higher, which makes zero sense.
Even if you tag a massive discount off its US peers’ market cap, say 80%, ARIDGE’s estimated $0 — $0.5 billion valuation still seems way off.
Next robots. Xpeng is a top challenger in the All-Purpose, Humanoid robot space. Yet same with its flying cars, the robot division’s valuation is almost negligible, while its US peers enjoy very rich valuations and their progress is around the same stage as Xpeng.
Even a big discount from its US peers should attribute significant value to Xpeng’s robot division alone.
Lastly robocars and taxis, another huge opportunity. Baidu’s Apollo Go isn’t listed here as its valuation is unknown, estimated in the few billions. The robotaxi space is pretty crowded and Xpeng is currently behind many established robotaxi companies. But it has the potential to catch up quickly, and its trump card is its mass production and full stack capabilities which should give its robotaxis a substantial lower cost base and faster development speed than traditional robotaxi companies.
And then there’s that other overlooked aspect which is robocars for consumers, which could be what, a multi Trillion dollar market? And you guessed it, Xpeng’s robocar division is valued at $0 at this point.
And that’s it.
There are also many potential stock catalysts such as:
China leadership’s pivot to high quality technological growth and domestic consumption, as stated in the Fourth Plenum, where Xpeng’s businesses tick all the boxes
Future partnerships/investments with mega tech firms or institutions once their core EV business achieves steady profitability, and their nascent businesses show proof-of-concept and insane growth. AI Day 2025 was a big eye-opener for many people especially in the west, and I am waiting for announcements of more investments/partnerships with companies from all around the world. Some prime examples include:
US MNCS or Rich Individuals or Hedge Funds (e.g. GM, Ford, Nvidia, Apple, maybe Elon Musk or Tesla even? A large stake in Xpeng won’t even dent their balance sheet. However geopolitics might put them off)
Asia or Middle East Sovereign Funds (Especially UAE, they have already placed a huge order for Xpeng’s Flying Cars, so a small investment (insignificant to them really) may be a no-brainer
China Big Tech Firms (Xpeng’s nascent businesses all have possible synergies with a wide range of sectors — food delivery robots for Meituan, robotaxis for DiDi, ecommerce delivery robots for Alibaba, AI Chips for Tencent, etc.)
Industry Partnerships (e.g. Hyundai is in talks for Xpeng autonomous driving software, possibly more to come, perhaps Chinese/Japanese/European/US automakers or robotics firms)
Many of these firms may be waiting for Xpeng to hit profitability/positive cashflow to partner or invest, sometimes due to internal mandates. Which isn’t too far off and why it may be a good idea to buy the stock now while the price is low.
Addition of Xpeng into more Tech ETFs or Robot ETFs
Xpeng becomes a meme stock, similar to Nio in the 2021 heydays
But overall, the takeaway here is Xpeng’s destiny is in its own hands. And if just some, not all, stars align, Xpeng might be the last stock you ever need to invest in to FIRE.
Beware though, Xpeng stock is notoriously volatile, with huge intraday swings of 5 to 10% not an uncommon sight. I feel the stock will see more stability and positive bias when it hits profitability soon, and when more anchor investors buy into the Xpeng vision. Also won’t be surprised to hear of major MNCs or hedge funds, say from the US, Middle East, or China, taking stakes into Xpeng, which might cause the stock to rocket.
0 Comments