What is the deployment roadmap for VLA 2.0 in overseas markets, its impact on global sales, and potential for monetization?

Preparation for VLA 2.0 overseas testing is underway, with gradual rollout expected by end of 2026 or early 2027. VLA 2.0 demonstrates strong generalizability in overseas markets without local road data and performs well on smaller roads, offering an advantage over competitors. The company is confident in converting this technology into business opportunities and revenue through monetization, with hardware preparations complete for bigger tests and future launches. “we have already launched the preparation for testing our VLA 2.0. So by end of this year or beginning of next year, we are going to gradually roll out the VLA second-generation testing in great scale and also its delivery or deployment across different regions.”

What are the major milestones for humanoid robots in the next 1-2 years, and how can XPeng leverage its R&D, production, and supply chain expertise from vehicles?

Humanoid robot mass production is targeted for H2 2026, with a monthly production goal of at least 1,000 units by year-end. XPeng is developing humanoid robots using car-grade standards, including in-house development of joints, torso, SoC, foundational models, and training. There is significant synergy in R&D, mass production, supply chain management, quality control, and globalization between vehicle and robot development, leveraging XPeng's full-stack technology and cross-domain integration. “by end of the year, our targeted production is at least 1,000 units. And I think in future vehicle companies will also be robotic companies.”

How should we expect cost reduction after mass production of humanoid robots, and are external sales anticipated?

Mass production will reduce the Bill of Materials (BOM) cost for humanoid robots. Software and operational costs will improve based on specific application scenarios. XPeng's strategy is to target commercial applications first (e.g., reception, guidance, retail assistance), then industrial, and finally household scenarios, focusing on actual deployment and commercialization rather than academia. The company did not explicitly mention external sales but implied commercialization beyond internal use. “we will first go into the commercial scenario before going to industrial and lastly, household.”

XPEV

XPeng (XPEV) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Consumer Discretionary· Mar 20, 2026

Source: earnings call transcript

Executive summary

XPeng Q4 FY25 — First Quarterly Profit Driven by Physical AI and Global Expansion

XPeng achieved its first quarterly net profit in Q4 FY25, driven by strong delivery growth and improved margins, marking a pivotal inflection point in its physical AI strategy. The company is aggressively expanding its product portfolio, accelerating global market penetration with VLA 2.0, and investing heavily in AI R&D for autonomous driving and humanoid robots, aiming for long-term leadership in physical AI agents. This quarter highlights a business model driven by technology leadership, distinct from traditional automakers.

Highlights

Achieved first-ever quarterly net profit of RMB 380 million in Q4 FY25.
Annual deliveries reached 429,445 units in FY25, up 126% year-over-year.
Gross margin for fiscal year 2025 reached 18.9%, an increase of 4.6 percentage points year-over-year.
Overseas deliveries nearly doubled to 45,000 units in FY25, contributing over 15% of total revenue.
Generated a free cash flow inflow of approximately RMB 5 billion in FY25, ending the year with RMB 47.7 billion cash on hand.

Guidance & targets

Category	Target	Timeline	Confidence
Deliveries	61,000 to 66,000 units high materiality	Q1 · FY26	High
Revenue	RMB 12.2 billion and RMB 13.2 billion high materiality	Q1 · FY26	High
March Deliveries Sequential Growth	69% to 101% month-over-month medium materiality	March 2026 · FY26	High
Quarterly Sales Growth	Continuously trend upward and achieve year-over-year growth significantly outpacing the industry high materiality	H2 FY26	High
Overseas Deliveries Growth	Double year-over-year high materiality	FY26	High
International Business Contribution to Total Revenue	Over 20% high materiality	FY26	High
New Model Launches	Launch 4 new models high materiality	FY26	High
Overseas Stores	680 overseas stores medium materiality	FY26	High
XPeng GX Preorders	Start preorders high materiality	Q3 · FY26	High
Humanoid Robot IRON Mass Production	Enter mass production high materiality	End of FY26	High
Humanoid Robot IRON Monthly Production Target	Over 1,000 units high materiality	End of FY26	High
Physical AI R&D Investment	RMB 7 billion high materiality	FY26	High
VLA 2.0 Edge Parameters	20 billion level medium materiality	End of FY26	High
VLA 2.0 Average Miles Per Takeover	Increase by 25x medium materiality	End of FY26	High
VLA 2.0 Safety-Critical Miles Per Takeover	Increase by 50x medium materiality	End of FY26	High
Fully Autonomous Driving	Expected to come in the next 1 to 3 years high materiality	Next 1-3 years	High
GX Robotaxi Pilot Passenger Operations	Launch pilot passenger operations medium materiality	H2 FY26	High
Turing SoC Shipments	Nearly 1 million units medium materiality	FY26	High
VLA 2.0 Overseas Road Testing	Begin overseas road testing medium materiality	H2 FY26	High
Extended Range Product Line Overseas Launch	Launch by the end of this year medium materiality	End of FY26	High
Robotaxi Operations without Safety Driver	Hopefully without safety driver on board high materiality	Beginning of FY27	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Overseas Markets Overseas markets showed significant growth in deliveries and revenue contribution in FY25, with Europe being the largest regional market. Southeast Asia and emerging markets like the Middle East, Central Asia, and Latin America are also key growth points. Deliveries FY25: 45,000 unitsDeliveries Growth FY25: Nearly doubled year-over-yearRevenue Contribution FY25: Over 15% of total revenueVolume in Europe: Approximately 50% of overseas volume	—	—	—	—

XPEV operating KPIs by quarter

XPEV operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Vehicle deliveries	62.68K In the first quarter, amid broad market volatility in China's domestic new energy vehicle market, we delivered a total of 62,680 vehicles. Source: earnings call transcript	103.295K In the second quarter, our vehicle deliveries reached 103,295 units, up 65% quarter-over-quarter, and we achieved a year-over-year growth ahead of the broader industry. Source: earnings call transcript	+64.8%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
MONA M03	milestone	FY25
P7+	milestone	FY25
Kunpeng Super Extended Range EV X9	launch	FY25
XPeng GX	launch	Preorders Q3 2026
4 new models	roadmap	FY26
Humanoid Robot IRON	launch	Mass production by end of 2026

Deals & partnerships

Volkswagen Group Technical R&D services and adoption of Turing SoC and VLA 2.0

Volkswagen is XPeng's first external customer for both the Turing SoC and VLA 2.0, demonstrating the scalability and competitiveness of XPeng's technology. Technical R&D services rendered to Volkswagen Group contributed to increased service revenue.

What to watch in Q1 FY26

Q1 FY26 Deliveries

Q1 FY26 results

Target 61,000 to 66,000 units

Why it matters

Verifies short-term sales momentum and market acceptance of new models and VLA 2.0.

For the first quarter of 2026, we expect deliveries to be between 61,000 and 66,000 units.

Find out whether XPEV delivers this. Inve re-checks your case every morning.

Q&A highlights

What major upgrades are expected for VLA 2.0 in the coming months, and how will it impact order conversion and user retention?

VLA 2.0 will receive quarterly OTA updates, expanding coverage to smaller roads, parking lots, and campuses. Edge model parameters will increase to 20 billion, aiming for 5-10x mileage takeover improvement. Test drives and Ultra/Ultra S1 sales have already doubled, indicating positive market reaction and expected higher sales volume, conversion rates, and average selling price. Users find the VLA 2.0 experience indispensable.

“after trying VLA 2.0, there's no going back for me, honestly, because I travel a lot and a lot of the times, I actually rely on professional drivers who drive me around. And after trying VLA 2.0, I realized when I now use other types of autonomous driving versions or when I ride our professional driver's cars, they are not nearly as good as VLA 2.0 because VLA 2.0 now gives me the smoothness of driving.”

asked by Tim Hsiao · answered by He Xiaopeng

3 min read 6 chapters

Detailed narrative

Physical AI and VLA 2.0 Advancement

XPeng is at a pivotal inflection point in physical AI, with its VLA 2.0 autonomous driving system successfully passing the physical Turing test, demonstrating driving performance comparable to human drivers. The company plans aggressive scaling of VLA 2.0, targeting an increase in edge parameters from several billion to 20 billion level by year-end, which is expected to boost average miles per takeover by 25x and safety-critical miles per takeover by 50x.

Fully autonomous driving is anticipated within the next 1 to 3 years, transforming advanced autonomous driving into a mainstream feature.

Humanoid Robot Development

XPeng's next-generation humanoid robot, IRON, powered by three Turing AI SoCs, is targeted to enter mass production by the end of 2026, with a monthly production goal of over 1,000 units. The company is applying car-grade standards to its development, focusing on in-house technology for joints, torso, SoC, and foundational models.

IRON will initially be deployed in commercial scenarios such as reception and retail assistance across XPeng stores and campuses, leveraging the company's strengths in mass production and supply chain management.

Product Portfolio Expansion and Global Strategy

In 2026, XPeng plans to launch four new models globally, expanding into both large and compact vehicle segments, including the flagship 6-seat full-size SUV, the XPeng GX, which will support L4 hardware and software capabilities. The company aims to double overseas deliveries in 2026, with international business contributing over 20% of total revenue.

This expansion will be supported by increasing overseas stores to 680 and introducing its extended range product line to select international markets by year-end.

Turing AI SoC and Volkswagen Partnership

The in-house developed Turing AI SoC has shipped over 200,000 units since Q3 2025 and will be fully integrated into all Max trims of XPeng models starting Q2 2026. Shipments are targeted to reach nearly 1 million units in 2026.

Volkswagen is the first external customer for both the Turing SoC and VLA 2.0, demonstrating the scalability, replicability, and global competitiveness of XPeng's technology, and inviting more automakers to adopt its intelligent solutions.

Financial Performance and R&D Investment

XPeng achieved its first quarterly net profit of RMB 380 million in Q4 FY25, with total revenues of RMB 22.25 billion, up 38.2% YoY. Gross margin improved to 21.3% in Q4 FY25, driven by cost reduction and product mix. The company reported a free cash flow inflow of RMB 5 billion in FY25 and a strong cash position of RMB 47.7 billion.

Physical AI-related R&D investment is set to increase to RMB 7 billion in 2026, underscoring a sustained commitment to technological leadership.

Robotaxi Commercialization

The GX Robotaxi, powered by VLA 2.0, has received official road testing approval in Guangzhou and is currently undergoing L4 corporate road tests. XPeng plans to launch pilot passenger operations for its mobile taxi service in H2 2026 to validate the technology, user experience, and business model.

Overseas road testing of VLA 2.0 will also commence in H2 2026, with the long-term vision of scaling autonomous driving across multiple global markets, subject to regulatory evolution.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.