Zohran Mamdani's remarks on RSS chief Mohan Bhagwat's New York event draw flak, supportMohan Bhagwat is scheduled to address the Indian diaspora at the 'Universal Oneness Celebrations' at Madison Square Garden on August 29. Published on: Aug 26, 2026
XPeng bets robots will be more profitable than its carsXPeng Co-President Brian Gu thinks its margins will eventually eclipse those of the core electric-vehicle business. Published on: Aug 26, 2026, 14:30:07 IST WSJ Prefer HTon Google Share via Copy link XPeng carved out a space in China’s car
The Supreme Court was on Tuesday told that only 7 lakh out of 38 lakh appeals before special intensive revision tribunals in West Bengal were against deletions from the electoral rolls, while 31 lakh applications were challenging inclusion in the list, The Telegraph reported
Choosing the right beard trimmer becomes easier when you have control over trimming length and attachments for different grooming needs. For men who regularly switch between stubble, a fuller beard and body grooming, an all-in-one trimmer can be more practical than a basic beard-only model
A surge in attacks across Southern Thailand has put a spotlight on the low-level insurgency by Muslim separatists that has killed thousands of people in the last two decades. Dozens of coordinated night-time attacks across the three southernmost provinces near Malaysia over the weekend injured
XPeng bets robots will be more profitable than its cars
XPeng bets robots will be more profitable than its cars
XPeng bets robots will be more profitable than its cars
XPeng Co-President Brian Gu thinks its margins will eventually eclipse those of the core electric-vehicle business.
Published on: Aug 26, 2026, 14:30:07 IST WSJ Prefer HTon Google Share via Copy link XPeng carved out a space in China’s car market with autonomous driving. But it’s robots, not vehicles, that could become the company’s biggest money maker. XPeng’s robotics unit raised more than $900 million in what it said was the largest-ever single-round private capital raise in China’s embodied AI industry. Though the U.S.-listed company’s robotics unit has yet to generate meaningful revenue, XPeng Co-President Brian Gu thinks its margins will eventually eclipse those of the core electric-vehicle business. Valued at more than $6.3 billion, the unit will start mass producing XPeng’s humanoid robot this year. Iron, a realistic-looking robot with electronic skin and a bionic spine, could deliver a hardware gross margin of more than 50%, said Gu, who is also vice chairman of the Guangzhou-based company. That compares with the 12.1% gross margin XPeng’s vehicle segment recorded in the second quarter. “Once it [Iron] has reached volume production at a steady state, we think it has potential to be more than twice of the BOM [bill of materials] cost,” Gu said, referring to the amount spent to manufacture a product. That stacks up promisingly against industry leaders. Unitree Robotics, one of China’s top humanoid-robot firms, reported a gross margin of more than 60% in 2025. China dominates the global supply of humanoid robots, and analysts expect momentum to keep growing as Beijing throws its weight behind the sector and technological breakthroughs continue. But there are reservations about monetization in the capital-intensive industry. Building a robot capable of handling multiple tasks like staffing an information desk or making coffee requires significant training and computing power that will probably cost more than developing a vehicle, Gu said. Despite the conviction on margins, it’s not yet clear when XPeng’s robotics unit will reach operating breakeven, meaning it can cover costs with revenue but has not made a profit. XPeng’s robotics arm could still reach operating breakeven faster than the EV business did, said Gu, as it can rely on existing manufacturing infrastructure, reducing factory spend. Software and capability updates could also generate recurring revenue, recouping investment. For now, the company’s robotics financial targets remain preliminary as it builds up production and develops its commercial team. Potential profitability challenges haven’t deterred institutional investors from backing XPeng’s ambitions. Earlier this week, XPeng’s robotics unit raised more than $900 million in what it said was the largest-ever single-round private capital raise in China’s embodied AI industry. IDG Capital—a China-focused venture-capital firm—led the financing, with participation from Gaorong Ventures, plus Alibaba Group and Tencent Holdings as strategic investors. External investors committed $600 million, while XPeng Chief Executive He Xiaopeng and Gu put in $100 million. The remainder came from the group itself. Securing such backing is a good start for a business that has yet to prove its viability. “We see this as a strong validation of its [XPeng’s] physical AI strategy and a positive step toward unlocking value in its robotics platform,” Jefferies analysts said in a recent note. Unlike many of its peers, XPeng isn’t making a humanoid robot solely for factories. “We want to build a general-purpose robot,” said Gu. Iron was designed with a human-like form and movements that Gu said makes it ideal for use in offices and residences. XPeng’s initial target market is small and medium businesses and storefronts. Factory and home use could follow, the executive said. XPeng plans to make its robotics operations more independent within 18 months, but that doesn’t necessarily mean it will pursue an initial public offering. Gu said there is “no pressure” to spin off the business, with XPeng focusing on production and commercialization instead. The next big test for XPeng’s ambitions will be whether it can progress Iron from in-store demonstrations to real-world deployment. “We have a lot of hopes for the business beyond the $6.3 billion [valuation],” Gu said. Write to Jiahui Huang at Jiahui.Huang@wsj.com Stay updated with the latest Technology News, gadget launches, app updates, artificial intelligence and digital trends. Find reviews, comparisons and useful insights from the world of tech. Home/Technology/XPeng Bets Robots Will Be More Profitable Than Its Cars See LessXPeng carved out a space in China’s car market with autonomous driving. But it’s robots, not vehicles, that could become the company’s biggest money maker.
Though the U.S.-listed company’s robotics unit has yet to generate meaningful revenue, XPeng Co-President Brian Gu thinks its margins will eventually eclipse those of the core electric-vehicle business.
Valued at more than $6.3 billion, the unit will start mass producing XPeng’s humanoid robot this year. Iron, a realistic-looking robot with electronic skin and a bionic spine, could deliver a hardware gross margin of more than 50%, said Gu, who is also vice chairman of the Guangzhou-based company.
That compares with the 12.1% gross margin XPeng’s vehicle segment recorded in the second quarter.
“Once it [Iron] has reached volume production at a steady state, we think it has potential to be more than twice of the BOM [bill of materials] cost,” Gu said, referring to the amount spent to manufacture a product.
That stacks up promisingly against industry leaders. Unitree Robotics, one of China’s top humanoid-robot firms, reported a gross margin of more than 60% in 2025.
China dominates the global supply of humanoid robots, and analysts expect momentum to keep growing as Beijing throws its weight behind the sector and technological breakthroughs continue. But there are reservations about monetization in the capital-intensive industry.
Building a robot capable of handling multiple tasks like staffing an information desk or making coffee requires significant training and computing power that will probably cost more than developing a vehicle, Gu said.
Despite the conviction on margins, it’s not yet clear when XPeng’s robotics unit will reach operating breakeven, meaning it can cover costs with revenue but has not made a profit.
XPeng’s robotics arm could still reach operating breakeven faster than the EV business did, said Gu, as it can rely on existing manufacturing infrastructure, reducing factory spend. Software and capability updates could also generate recurring revenue, recouping investment.
For now, the company’s robotics financial targets remain preliminary as it builds up production and develops its commercial team.
Potential profitability challenges haven’t deterred institutional investors from backing XPeng’s ambitions.
Earlier this week, XPeng’s robotics unit raised more than $900 million in what it said was the largest-ever single-round private capital raise in China’s embodied AI industry. IDG Capital—a China-focused venture-capital firm—led the financing, with participation from Gaorong Ventures, plus Alibaba Group and Tencent Holdings as strategic investors.
External investors committed $600 million, while XPeng Chief Executive He Xiaopeng and Gu put in $100 million. The remainder came from the group itself.
Securing such backing is a good start for a business that has yet to prove its viability.
“We see this as a strong validation of its [XPeng’s] physical AI strategy and a positive step toward unlocking value in its robotics platform,” Jefferies analysts said in a recent note.
Unlike many of its peers, XPeng isn’t making a humanoid robot solely for factories. “We want to build a general-purpose robot,” said Gu.
Iron was designed with a human-like form and movements that Gu said makes it ideal for use in offices and residences.
XPeng’s initial target market is small and medium businesses and storefronts. Factory and home use could follow, the executive said.
XPeng plans to make its robotics operations more independent within 18 months, but that doesn’t necessarily mean it will pursue an initial public offering.
Gu said there is “no pressure” to spin off the business, with XPeng focusing on production and commercialization instead.
The next big test for XPeng’s ambitions will be whether it can progress Iron from in-store demonstrations to real-world deployment.
“We have a lot of hopes for the business beyond the $6.3 billion [valuation],” Gu said.
Write to Jiahui Huang at Jiahui.Huang@wsj.com
Source: HindustanTimes
Related Posts: Microsoft, AWS deploy engineer armies to help make AI profitable Freshworks turns profitable in Q2 India Buys Fuel Where It Is Profitable Turtlemint eyes profitable FY27 as renewal book grows How China powers its electric cars and high-speed trains Humanoid Robots From AI robots to smart locks Robots capable of manning borders in extreme temperature to be manufactured at Nagpur facility Foxconn vendor Agile Robots acquires majority stake in XNG Automation to scale up local production
Bodies of 1 woman, 5 children found in Karnataka lake, probe underway: PoliceOn Monday, around 5am, he found that his wife and four children were missing from the house, police said Published on: Aug 26, 2026, 14:02:14 IST By Yohan P Honaddi
10 minutes ago
The AI security market is projected to reach nearly $4.8 billion by 2027. This sector is set for rapid growth as enterprises increase investments in AI technology. New vulnerabilities are emerging from AI models and supply-chain attacks, requiring specialised tools
10 minutes ago
India, the world's largest consumer of sugar, is trying to avoid a bittersweet festive season. Sugar prices have jumped nearly 40% in the past two months, prompting the government to import 1 million tonnes for the first time in nearly a decade. The move comes as demand surges from August
10 minutes ago
Why Kriti Sanon's Rakshabandhan ad sparked major row, forced GIVA to take it downIn the ad, Kriti Sanon was seen wearing an Indo-Western outfit comprising a bralette-style blouse with a cape and a draped skirt. Updated on: Aug 26, 2026, 14:13:18 IST By Karishma Ayaldasani Prefer HTon Google Share
10 minutes ago
A Zomato user’s post has gone viral on X after they appeared shocked by the unusually high delivery fee quoted for a food order. The user, @Rudra_pvt_, shared a screenshot of their order, showing an item total of ₹379. However, the final bill included several additional charges
10 minutes ago
New York City Mayor Zohran Mamdani on Tuesday said he does not support an upcoming event in which Rashtriya Swayamsevak Sangh chief Mohan Bhagwat is scheduled to speak. However, the city may not have any “jurisdiction to cancel a private event”, he added
10 minutes ago
What makes a great investor?A big dose of luck, and a distinctly odd character Published on: Aug 26, 2026, 13:32:24 IST The Economist Prefer HTon Google Share via Copy link One day in 1992 Stanley Druckenmiller marched into his boss’s office, saying: “George, I’m going to sell $5
10 minutes ago
Man sent Raj Shamani a DM at 17, says it helped him make ₹1 crore by 22: ‘He bet on me’Raj Shamani hired a 17-year-old after he sent him a Twitter thread in a late-night DM. Updated on: Aug 26, 2026, 13:19:48 IST By Vaishali Kapila Prefer HTon Google Share via Copy link A single DM sent late
10 minutes ago
Nancy Guthrie update: Savannah Guthrie worries fans in first ‘red carpet’ appearance after kidnapping; ‘getting so thin’Savannah Guthrie attended the US Open Exhibition Match and videos of her circulated online sparking worries amid the search for her mother, Nancy Guthrie
10 minutes ago
Raheem Sterling will appear in court next month to face charges of dangerous driving and possessing nitrous oxide for wrongful inhalation after crashing his car into motorway barriers in May. The former England winger, who most recently played for Feyenoord in the Dutch Eredivisie
10 minutes ago
Actress Kriti Sanon faced public scrutiny over a recent television advertisement. Congress MP Gaurav Gogoi highlighted the patriarchal mindset in public discourse. Jewellery brand GIVA withdrew the advertisement after facing concerns. Kriti Sanon questioned the focus on women's clothing and
10 minutes ago
An Indian jewellery brand has removed their new advertisement for the upcoming festival of Rakshabandhan, also known as Rakhi, after backlash over the outfit worn by the female lead. The ad featured popular Bollywood actor Kriti Sanon celebrating the Hindu festival in which sisters tie a thread
10 minutes ago
Man walks away from luxurious Dubai life to open a small shop in Uttarakhand: ‘Bahut bhaag liya life mein’Following his father’s death, the man re-evaluated his priorities and chose to embrace a much slower, more intentional way of living. Updated on: Aug 26, 2026
10 minutes ago
Meta Platforms and state attorneys general have discussed a potential mid-trial settlement of a lawsuit accusing the company of deliberately designing Facebook and Instagram to be addictive to young users, Bloomberg News reported on Tuesday, citing people familiar with the matter
9 minutes ago
Five commodity vessels transited the Strait of Hormuz on Tuesday (August 25, 2026), little changed from a day earlier but well below the 10-day average of 15, preliminary shipping data showed on Wednesday (August 26) Two tankers carrying liquefied petroleum gas and one tanker carrying
9 minutes ago
The much-loved US singer-songwriter, actress and philanthropist Dolly Parton, who has died aged 80, was known as the Queen of Country. Raised in Tennessee, she rose to fame in the late 1960s with hits that bridged country and pop music. Her songs covered deeply personal themes around growing up
10 minutes ago
For several weeks now, technologists in the U.S. have been drumming up support for more open-weight AI model launches in order to keep ahead of China’s AI, even as they weigh up the security risks of models that users can modify and run independently.For several weeks now, technologists in the U
9 minutes ago
Fungal vs bacterial acne: Dermatologist explains how to identify your monsoon breakout Published on: Aug 26, 2026, 14:14:55 IST By Adrija Dey Prefer HTon Google Share via Copy link Find out what kind of breakout you are getting in the monsoon
9 minutes ago
Pakistan’s Kirana Hills, which is reported to have a nuclear installation, may have been struck by a loitering munition fired by India during Operation Sindoor in May 2025, said former Chief of Defence Staff General Anil Chauhan on Tuesday. Chauhan was the chief of defence staff during the
10 minutes ago
When Callum McGregor eviscerated his own team-mates in the wake of Celtic's stupefying Champions League collapse against LASK, he delivered their one coherent moment of a spineless night. In branding his fellow players "passive" and "scared" and in then sending a telling shot across their bows -
10 minutes ago
Flash flood hits Nepal's villages, roads and bridges washed away | VideoAuthorities urged people living along the Bhote Koshi river to move to higher ground as they assessed the extent of the damage Updated on: Aug 26, 2026, 14:06:23 IST By HT News Desk Prefer HTon Google Share via Copy link A
10 minutes ago
The sky over Ladakh turned into a stunning display of soft colours when a woman spotted rare rainbow clouds while travelling through the region. The clouds appeared in shades of pink, green, blue and violet, making the sky look almost like a painting
10 minutes ago
The top executive at Instagram said few teenagers used a key safety feature to limit their use before it was turned on by default, at a trial over whether Meta Platforms designed Instagram and Facebook to addict children.Adam Mosseri, the head of Instagram since 2018
10 minutes ago
New CAA rules: This decision, notified by Ministry of Home Affairs (MHA), bypasses the earlier central government-led “Empowered Committees” to fast-track pending applications Under the newly notified Citizenship (Third Amendment) Rules, 2026
10 minutes ago
Nothing OS 5.0 is here with a fresh new look, smarter AI and Android 17 featuresNothing OS 5.0 brings a redesigned interface, smarter AI tools and Android 17 features, with the Open Beta starting today. Published on: Aug 26, 2026, 12:18:30 IST Prefer HTon Google Share via Copy link Nothing has
10 minutes ago
SP promises 'Stree Samman Samriddhi Yojana' if voted to power in 2027 Assembly pollsSP promises 'Stree Samman Samriddhi Yojana' if voted to power in 2027 Assembly polls Published on: Aug 26, 2026, 14:11:22 IST PTI Prefer HTon Google Share via Copy link Lucknow
10 minutes ago
Young students are protesting across India for better school conditions. Issues include lack of fans, toilets, and teachers in many schools. Gen Alpha and Gen Z students are demanding improvements to their learning environments. These demonstrations highlight a broader failure in prioritizing
10 minutes ago
