Xpeng Iron humanoid robot on display at the company’s headquarters in Guangzhou, China, in April 2026. Credit: CnEVPost.
- Dogotix has secured $900 million in funding commitments, with $600 million from external investors including IDG Capital, Alibaba, Tencent and Gaorong Ventures.
- Xpeng will continue to consolidate Dogotix after the transaction and will hold about 81.97% if additional investments are excluded.
Xpeng (NYSE: XPEV) plans to carve out its robotics business into Dogotix as a standalone operation and bring in about $900 million in funding commitments.
The arrangement will establish a standalone valuation and financing channels for the capital-intensive robotics business while allowing Xpeng to retain control.
Xpeng said in a Hong Kong Stock Exchange filing on Monday that the company, Dogotix, the investors and the executive subscribers had entered into a conditional share purchase agreement.
The transaction gives Dogotix a pre-money valuation of $5 billion. Its implied post-transaction valuation would be about $6.3 billion if the equity incentive plan’s mandate is fully utilized, excluding potential additional investment and warrant exercises.
Dogotix expects to receive about $900 million from the subscription. Xpeng’s wholly owned subsidiary Xpeng Dogotix will invest $200 million, while external investors will contribute $600 million.
Companies controlled by Xpeng chairman and CEO Xiaopeng He and co-president Brian Gu will invest a combined $100 million to subscribe for Dogotix ordinary shares.
The financing is led by IDG Capital, with participation from Gaorong Ventures and support from Tencent and Alibaba as strategic investors.
Dogotix may also issue up to $15 million worth of preferred shares to an additional investor at the same price within 4 months of the agreement.
Companies controlled by He and Gu will also receive warrants allowing them to invest an additional $400 million and $100 million, respectively. The potential $500 million is not included in the current $900 million financing.
The transactions remain subject to closing conditions, the filing said. None of the conditions had been satisfied or waived as of the announcement, meaning the transactions may not be completed.
Dogotix will cease to be a wholly owned Xpeng subsidiary after the subscription and equity incentive plan take effect. Excluding additional investment, warrant exercises and transfers of certain incentive shares, Xpeng will hold about 81.97%.
If the additional investment is completed, all warrants are exercised and the 15% equity incentive mandate is fully utilized, Xpeng’s stake will be further diluted to about 68.41%.
Even then, Dogotix will remain a controlled subsidiary of Xpeng, and its financial results will continue to be consolidated into Xpeng’s financial statements.
Under the carve-out plan, Xpeng will transfer assets, intellectual property, personnel, systems and operational resources primarily related to the robotics business to Dogotix.
The process is generally expected to be completed within 18 months after the external investors complete their first tranche of share subscriptions. Dogotix is then expected to have the personnel and resources required to operate the robotics business independently.
Dogotix’s business covers the research, development, manufacturing, licensing and commercialization of general-purpose robots and robotic systems, including humanoid, bipedal, quadrupedal and tracked robots.
Xpeng’s automotive, flying vehicle, robotaxi, chip and other Physical AI businesses are excluded from the carve-out.
Dogotix will use the proceeds for the expansion, capital expenditures, research and development, commercialization and general working capital needs of the robotics business.
Xpeng said bringing in specialized investors would allow the market to assess Dogotix’s value separately while reducing the burden of robotics research, development and commercialization on the group’s balance sheet.
The investors were also granted redemption rights. If Dogotix fails to complete a qualified IPO within 7 years after the first tranche of subscriptions is completed, they may require Dogotix, its major subsidiaries or Xpeng to repurchase their shares.
The redemption price will be the higher of the investment cost plus interest compounded at 8% annually or 120% of the investment cost, plus any declared but unpaid dividends.
Unaudited management accounts showed that Dogotix had net liabilities of about 447 million yuan ($65.9 million) as of March 31.
Xpeng unveiled its next-generation Iron humanoid robot in November 2025. The robot is equipped with 3 in-house developed Turing AI chips delivering combined computing power of 2,250 TOPS.
The company plans to begin mass-producing Iron by the end of 2026 and increase monthly production capacity to more than 1,000 units, paving the way for deployments in China and overseas in 2027.
He said in June that he would personally take on the additional role of “CEO” of the robotics business. Xpeng subsequently reorganized its robotics center and established 9 second-tier departments.
The robotics financing announcement came about 1 hour before Xpeng was scheduled to release its second-quarter results. The company delivered 103,295 vehicles in the quarter, up 64.8% from the first quarter.
Xpeng plans to lift monthly capacity for its Iron humanoid robot to more than 1,000 units by the end of this year, paving the way for a global roll-out in 2027.
($1 = 6.7841 yuan)
Update: The headline has been changed to use the post-money valuation to more accurately reflect this transaction.
