XPeng’s Robotics Chief Exit Undermines Momentum as Robotaxi Production Ramps Up

The departure of Shi Xiaoxin, who led XPeng’s robotics division, has cast a shadow over the electric vehicle maker’s ambitious timeline for its humanoid robot “Iron.” Shi’s exit leaves a leadership void just as the company pushes into new frontiers beyond its automotive core. XPeng has been aiming to begin series production of humanoid robots by the end of 2026, but his departure has fuelled doubts about whether that schedule can be met. Work on the ET1 prototype and the Guangzhou factory continues, but the project now lacks its driving force.

That internal disruption comes at a moment when XPeng is trying to capitalise on operational milestones. The company has begun mass production of its first robotaxi at its Guangzhou plant, built on the in-house GX platform. The move takes the project beyond the prototype stage and signals a push toward scalable manufacturing. The board is betting on what it calls “physical artificial intelligence,” with autonomous driving set to enter everyday use. A global rollout of the new VLA 2.0 assistance system is pencilled in for 2027.

Investors, however, have yet to reward the progress. The stock hit a fresh 52-week low of €11.32 on Thursday in Frankfurt, before bargain hunters lifted it to €11.86 on Friday. Year to date the shares have plunged roughly 32%. The technical picture is grim: the stock trades 15% below its 50-day moving average and almost 30% below the 200-day line, underscoring the bearish sentiment that has taken hold.

Should investors sell immediately? Or is it worth buying XPeng?

While the robotics setback rattled confidence, XPeng is simultaneously accelerating its European push. The company launched official sales in Romania this week, offering four models with prices starting at just under €44,000. Management has set a target to double overseas sales this year and is aiming for 600,000 global deliveries in total. Talks with major shareholder Volkswagen about a potential European factory are ongoing, a move that would ease supply chain concerns for the region.

The first quarter was rocky. Revenue slid nearly 18% to 13.3 billion renminbi, and the group swung back into the red with a loss in the billions. For the second quarter, the board is promising a sharp reversal. Deliveries are expected to rise as much as 69% from the previous quarter, reaching up to 106,000 vehicles. Revenue should climb around 60% sequentially, with international sales contributing more than 20% of the total. May already provided a taste of the recovery, with over 32,000 vehicles handed over.

Analysts remain largely bullish despite the headwinds. Bank of America, J.P. Morgan and Morgan Stanley all maintain buy recommendations, betting on a rebound in sales volumes in the second half. Progress with autonomous driving technology also supports their positive view, even as the broader Chinese auto market cools and a price war among EV makers intensifies. BMW’s recent profit warning on weak demand in China serves as a reminder of the challenges, but for now the analysts see XPeng’s operational ramp-up outweighing the personnel loss.