China’s electric vehicle manufacturer Xpeng has started mass production of driverless taxis equipped with its own Turing AI chips, positioning itself as a key challenger to Tesla’s Full Self-Driving software in the fast-evolving autonomous vehicle race.
- Xpeng robotaxis powered by self-developed AI chips with L4 autonomy
- Pilot tests planned for late 2026; fully driverless operations by 2027
- Potential direct competition with Tesla’s FSD-driven Cybercab in China
What happened
Xpeng, a leading Chinese electric vehicle maker, has commenced mass production of autonomous taxis featuring its own Turing AI chips. These robotaxis boast Level 4 self-driving capabilities, allowing driverless navigation within designated areas without human intervention. The company intends to begin pilot operations in the second half of 2026 to validate technology, user adoption, and commercial viability.
This initiative is part of Xpeng’s broader transformation from an EV manufacturer to a technology innovator, developing not only intelligent cars but also humanoid robots and flying cars via affiliated ventures. The firm’s CEO has projected significant scale in robotics sales by 2030 and aims to remove safety operators from robotaxi services by early next year.
Why it matters
Xpeng’s move to mass produce L4 robotaxis signals intensified competition with Tesla, which has showcased its own Cybercab robotaxi powered by the Full Self-Driving software but has yet to launch commercial services in mainland China. Both firms are pushing the frontier of physical AI integration in transportation, shaping the future of mobility in China’s massive EV and autonomous vehicle markets.
China’s government has shown support through permits for road testing autonomous vehicles, and industry forecasts predict hundreds of thousands of driverless taxis could operate across top-tier cities within the next decade. Xpeng’s full-stack in-house development approach also contrasts with rival Chinese manufacturers partnering with third-party tech providers, potentially giving it a tighter integration advantage.
What to watch next
Key indicators to monitor include the success and user acceptance of Xpeng’s pilot robotaxi operations set to start in late 2026, as well as the company’s ability to eliminate on-site safety staff and scale fully autonomous services by early 2027. Regulatory developments and public road testing outcomes will also shape the commercial rollout pace.
Additionally, the evolving competitive dynamics between Xpeng and Tesla in China’s robotaxi space will be critical. Observers should watch for how both companies leverage AI hardware and software advancements to differentiate their autonomous driving systems and win market share.