• In February 2026, XPeng reported deliveries of 15,256 vehicles and rolled out nationwide test drives of its new VLA 2.0 autonomous driving system across 732 stores in China, while also starting construction plans for a Guangzhou factory to mass-produce its IRON humanoid robot by year-end.
• Together with exploratory cooperation talks involving Stellantis and continued focus on advanced driver-assistance technology, these moves highlight XPeng’s ambition to position itself as both an intelligent EV maker and a broader physical AI platform company.
• Against this backdrop, we’ll now examine how the VLA 2.0 rollout and autonomous driving focus may reshape XPeng’s existing investment narrative.

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XPeng Investment Narrative Recap

To own XPeng today, you generally have to believe it can turn high R&D spending on autonomy and robotics into a sustainable, profitable “physical AI” platform. In the near term, many investors are watching whether VLA 2.0 can support higher-margin software adoption, while the biggest risk remains ongoing losses and heavy capital needs. The latest VLA 2.0 rollout and IRON robot factory plan raise execution stakes but do not yet fundamentally change that near term risk-reward balance.

The most relevant recent development is the nationwide rollout of VLA 2.0 test drives across 732 stores in China. This directly links to XPeng’s core catalyst around in-house AI hardware and software, as VLA 2.0 is central to its push into higher value autonomous driving features. How quickly real-world usage of this system translates into paid software features, better pricing power or new licensing deals is likely to influence how credible that catalyst looks.

Yet behind the excitement around XPeng’s AI ambitions, investors should also be aware that...

XPeng's narrative projects CN¥137.4 billion revenue and CN¥6.4 billion earnings by 2028.

Uncover how XPeng's forecasts yield a $28.16 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts already expected XPeng’s revenue to reach about CN¥198.7 billion and earnings CN¥12.3 billion by 2028, so if you believe VLA 2.0 and physical AI can truly unlock that kind of upside, you are adopting a far more upbeat view than the baseline story and should compare these contrasting paths for yourself.

Explore 15 other fair value estimates on XPeng - why the stock might be worth over 2x more than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your XPeng research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free XPeng research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate XPeng's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.