XPeng Robotaxi Enters Testing as CEO Takes First Autonomous Ride

XPeng (XPEV) has kicked off closed beta testing of its robotaxi service in Guangzhou, with Chairman and CEO He Xiaopeng becoming the first internal passenger to complete a full autonomous ride. The milestone, announced on July 9, caps an eight-month sprint from the November 2025 announcement to a working end-to-end service. The stock rose 1.5% on Friday as investors weighed the company’s pivot toward physical AI and autonomous mobility beyond traditional EV sales.

How XPeng built its robotaxi in eight months

XPeng’s robotaxi is built on its flagship GX SUV and represents China’s first factory-installed, mass-produced robotaxi developed entirely in-house. The vehicle meets SAE Level 4 autonomous driving standards and runs four of XPeng’s own Turing AI chips, delivering 3,000 TOPS of onboard computing power, the highest of any vehicle globally according to the company. Unlike Waymo’s LiDAR-heavy approach, XPeng prioritises camera vision from day one, similar to Tesla’s strategy but retaining a radar system.

The software breakthrough that sets XPeng apart

XPeng’s VLA 2.0 model handles driving decisions end-to-end with system latency under 80 milliseconds, allowing the car to generalise in new cities without pre-mapped data. This addresses a major cost and scalability problem rivals face: HD mapping and geofencing lock robotaxis into limited service zones. XPeng’s production-first logic treats autonomy as a manufacturing problem rather than a fleet-conversion exercise, enabling faster deployment across regions.

2026 commercialisation and global expansion plans

XPeng aims to complete trial operations and begin regular demonstration services in 2026, starting with Guangzhou as a model city. Rather than operating its own ride-hailing fleets, XPeng plans to act as a technology supplier, providing autonomous driving software and hardware to local partners. The company is exploring partnerships across Europe, the Middle East, and Southeast Asia, positioning itself as a B2B platform rather than a consumer ride-hailing operator.

What the data says about XPEV’s valuation

XPEV trades at AUD $13.03 (as of July 12), down 35.8% year-to-date and 67.3% over five years. Meyka rates the stock a B with a hold recommendation, citing weak profitability metrics: negative ROE of -7.6%, negative ROA of -2.2%, and a debt-to-equity ratio of 1.46. The 12-month Meyka forecast stands at $25.30, implying 94% upside, though the company remains unprofitable with negative net income per share of -$4.72 TTM. RSI sits at 40.76, suggesting neither oversold nor overbought conditions.

Final Thoughts

XPeng’s robotaxi milestone signals a credible pivot toward autonomous mobility, but Meyka’s B rating and negative profitability metrics warrant caution. The 2026 commercialisation timeline and technology differentiation offer upside, yet execution risk and China regulatory uncertainty remain material headwinds for investors.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.