Chinese automakers are following Tesla's humanoid robot bet
Chinese automakers are following Tesla's bet that humanoid robots will become the next big profit machine, as embodied AI advances and car margins tighten. Xpeng, Chery, BYD, and rivals are raising billions and unveiling robots while chasing commercial deployment at scale alongside Musk's Optimus vision. Industry analysts say the shift reflects real technical progress—not just hype—as LLM-style AI techniques help robots learn complex tasks.
The hype around humanoid robots is not new—Elon Musk's Optimus and Boston Dynamics' Atlas helped fuel it. But behind the spectacle, physical capabilities are improving, and researchers believe large language model techniques can help complex robots learn nearly any task. Those tailwinds have drawn a new wave of entrants, and many of the latest are Chinese automakers.
Key Takeaways
- Xpeng's robotics unit raised more than $900 million at a post-money valuation above $6.3 billion—the largest single-round private financing in China's embodied AI industry.
- Chery's AiMOGA is preparing for an IPO; BYD unveiled the humanoid robot Xiao Di; Changan, GAC, Li Auto, SAIC, and Seres are also developing humanoids.
- Industry analyst Michael Dunne says Xpeng most closely mirrors Tesla's autonomy and robot focus as founder He Xiaopeng sees razor-thin near-term car profits.
- Global rivals from Agility Robotics to Hyundai's Boston Dynamics are pursuing the same commercial-deployment goal.
Why are Chinese automakers betting on humanoid robots now?
Earlier this week, Xpeng's robotics unit closed a round led by IDG Capital with participation from Gaorong Ventures, Tencent, and Alibaba. The company described it as the largest single-round private financing ever recorded in China's embodied AI sector—AI systems built directly into physical machines.
This month, AiMOGA, the robotics unit of Chery Automobile, reportedly began preparing for an IPO. BYD unveiled a humanoid robot called Xiao Di. Other Chinese automakers—including Changan, GAC, Li Auto, SAIC, and Seres—are also developing humanoid robots.
How closely is Xpeng following Tesla's playbook?
Among the group, Xpeng is the automaker that most closely watches and follows Tesla's initiatives, according to Michael Dunne, CEO of advisory firm Dunne Insights. "It's the most focused on autonomy, it's the first to commit in a big way to humanoid robots," Dunne told TechCrunch.
He Xiaopeng, Xpeng's founder, is a tech billionaire known for agility and quick adjustments. Dunne said he sees "razor-thin profit in cars on the near horizon" and that "robots look much more promising." Xpeng co-president Brian Gu and Xiaopeng invested about $100 million of their own funds into the recent round, according to the Wall Street Journal.
Xpeng's bet centers on Iron, a humanoid robot with a realistic human shape built for commercial deployment. Chinese automakers bring a manufacturing edge—"They have all the hardware to get the job done," Dunne said. The open question is whether they can catch Tesla on the AI side.
Who else is racing toward commercial robot deployment?
Xpeng is not alone globally. Agility Robotics, Apptronik, and Figure are among other companies chasing commercial deployment at scale. Hyundai-owned Boston Dynamics is getting closer: Hyundai plans to bring Atlas to its Georgia factory this year and deploy robots for tasks like parts sequencing by 2028.
Hyundai partnered with Google's DeepMind to accelerate Atlas development and is opening a U.S. Robot Metaplant Application Center this year to teach robots movements like lifts and turns. Supplier Mobileye acquired humanoid startup Mentee Robotics for $900 million earlier this year. Even Rivian is dabbling via its Mind Robotics spinout—though its robots are not expected to resemble the humanoids elsewhere.
For more on robotics, AI, and the companies reshaping mobility, see our Future Tech & AI Wonders coverage.