EV maker Xpeng set to challenge Tesla in embodied AI after robotics unit raises US$900m
Chinese EV manufacturer Xpeng has secured US$900 million in funding for its robotics subsidiary, Dogotix. This investment, which includes contributions from Alibaba Group Holding, Tencent Holdings, IDG Capital, and Gaorong Ventures, values Dogotix at US$6.3 billion. The fundraising represents the largest single private-equity deal for a Chinese robotics maker. Xpeng aims to challenge Tesla in embodied AI and humanoid robotics, despite reporting a 179 percent increase in its second-quarter net loss to US$199.4 million, driven by a 32.1 percent jump in R&D costs.
Xpeng’s US$900 million raise for Dogotix, its robotics unit, positions the company to accelerate its push into embodied AI and humanoid robots. This move reflects a clear strategy to diversify beyond electric vehicles and directly compete with Tesla in a high-growth, high-stakes sector. The investment, backed by major Chinese tech players like Alibaba and Tencent, underscores the significant capital flowing into advanced robotics within China, indicating a broader national ambition in AI hardware. The critical factor to watch is how Xpeng manages this expansion alongside its widening EV losses. While the US$6.3 billion valuation for Dogotix is substantial, the 179 percent increase in Xpeng’s net loss for Q2 2024, to US$199.4 million, shows the financial strain of its core business. The success of Dogotix will depend on its ability to quickly commercialize its robotics technology and generate revenue, rather than solely relying on investor enthusiasm for future AI potential.
