China's BYD and XPENG race Tesla to mass-produce humanoid robots by 2026
BYD and XPENG are betting big on physical AI, targeting household robots by 2030.
Chinese EV makers BYD and XPENG are racing Tesla to commercialize humanoid robots, betting that recent AI breakthroughs will unlock a massive market beyond transportation. BYD executive vice-president Stella Li expressed confidence that China will be the first market for full commercialization of humanoid robots, revealing plans to use BYD's established global dealer network to distribute the robots. XPENG CEO He Xiaopeng set an explicit target of selling one million robots annually by 2030, with mass production projected to kick off by the end of 2026. The robots are designed for factory labor, logistics, hospitality, and elderly care.
Other major players are joining the push: Li Auto, Xiaomi, and state-owned Chery Automobile (partnering with AI firm Aimoga on the Mornine robot) have outlined distinct robotics initiatives. This puts Chinese firms on a direct collision course with Tesla's Optimus project. Tesla China president Allan Wang Hao indicated the Shanghai Gigafactory could eventually manufacture Optimus. Notably, Elon Musk publicly praised XPENG's next-generation humanoid robot Iron, predicting that Chinese firms and Tesla would dominate global robotics. The intensifying competition underscores physical AI as a strategic sector in US-China geopolitical rivalry.
- BYD plans to use its global dealer network to distribute humanoid robots, with high confidence in China's first commercialization.
- XPENG targets 1 million robot sales annually by 2030, with mass production starting by end of 2026.
- Tesla's Optimus may be manufactured at Shanghai Gigafactory; Elon Musk praised XPENG's Iron robot.
Why It Matters
Physical AI competition heats up as Chinese EV giants target household robots, challenging Tesla's leadership in a key strategic sector.